User Manual For Enterprise Structure V.01

2022
*SAP FI NOTES*
2. USER MANUAL FOR ENTERPRISE STRUCTURE V.01
AMOL B. GIRI (MBA-FINANCE)
SAP FI-FINANCE & ACCOUTNING NOTES (2. ENTERPRISE STRUCTURE V.01) Page 1
2022
SAP Basic Information

Click on SAP Logo
Go to SAP Login Screen
Double click on or
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Put the User ID and Password
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Table of Contents
SAP Basic Information
Use of Transaction Code according to screen (T-CODE)
01. USER MANUAL FOR ENTERPRISE STRUCTURE V.02
1) Define Company-(Parent Company)
2) Edit, Copy, Delete, Check Company Code-(Child Company)
3) Assign company code to company-
4) Define Business Area
5) Define Functional Area
6) Maintain FM Area
7) Define Segment
8) To view the organization structure
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Enter “SPRO” in command field
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Double click on
 Click on IMG Activity.
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Enterprise Structure
In this section, you will learn how to portray the specific organizational structure of your
business in the R/3 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.
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.
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1) Define Company-(Parent Company)
Define Company
In this step you can create companies. 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.
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 cataloged 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.
Activities
Create your companies.
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Further notes
All company codes for a company must work with the same operational chart of accounts and
fiscal year. The currencies used can be different.
Define Company-(Parent Company)


SAP Easy Access
 SAP Customizing Implementation Guide

 Enterprise Structure
 Definition
 Financial Accounting
Define Company T-Code- SIMG_CFMENUSAPCOX15
 Click on
 l the details information about Parent Company
 Last 4 digit is my transaction code
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Click on Save Button
Click on
Create TR as per your Configuration
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Create own request
Click on OK Button
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2) Edit, Copy, Delete, Check Company Code-(Child Company)
In this activity you create your company codes. The company code is an organizational unit
used in accounting. It is used to structure the business organization from a financial accounting
perspective.
We recommend that you copy a company code from an existing company code. This has the
advantage that you also copy the existing company code-specific parameters. If necessary, you
can then change certain data in the relevant application. This is much less time-consuming than
creating a new company code. See "Recommendations" for more details about copying a
company code.
If you do not wish to copy an existing company code, you can create a new company code and
make all the settings yourself. You define your company codes by specifying the following
information:
 Company code key
You can select a four-character alpha-numeric key as the company code key. This key identifies
the company code and must be entered when posting business transactions or creating
company code-specific master data, for example.
 Company code name

 Address data
The address data is necessary for correspondence and is printed on reports, such as the
advance return for tax on sales/purchases.
 Country currency
Your accounts must be managed in the national currency. This currency is also known as the
local currency or the company code currency. Amounts that are posted in foreign currency are
translated into local currency.
 Country key
The country key specifies which country is to be seen as the home country; all other
countries are interpreted as "abroad". This is significant for business and payment
transactions because different forms are used for foreign payment transactions.
This setting also enables you to use different address formatting for foreign correspondence.
 Language key
The system uses the language key to determine text automatically in the language of the
relevant country. This is necessary when creating checks, for example.
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You do not specify the functional characteristic of the company code until configuring the
relevant application.
You can set up several company codes per client to manage the accounts of independent
organizations simultaneously. At least one company code must be set up in each client.
To take full advantage of SAP system integration, you must link company codes to the
organizational units of other applications. If, for example, you specify a CO account assignment
(for example, cost center or internal order) when entering a document in FI, then the system
must determine a controlling area to transfer this data to CO. You must specify how the system
is to determine the appropriate controlling area.
The system derives the controlling area from the company code if you assign it directly to a
company code. You can also assign several company codes to one controlling area.
Standard settings
Company code 0001 has already been created in clients 000 and 001 for the country DE
(Germany). All country-specific information ("parameters") is preset in this company code,
such as the payment methods, tax calculation procedures, and chart of accounts typical for this
country.
If you want to create a company code for the USA and its legal requirements, you must first of
all run the country installation program in client 001. The country of company code 0001 is
then set to "US" and all country-specific parameters related to it are set to the USA. For more
information, see the Set Up Clients activity under "Basic Functions" in the Customizing menu.
Recommendation
You should keep the preset company code number 0001 if you only require one company
code. This keeps to a minimum the number of tables you need to set up.
You can copy a company code using a special Customizing function. Company code-specific
specifications are copied to your new company code. The target company code must not yet be
defined, it is defined automatically during the copying procedure.
SAP recommends the following procedure when creating company codes:
1. Create the company code using the function "Copy Company Code".
2. Enter special company code data with the function "Edit Company Code Data".
You can also use the function "Edit Company Code Data" to create a company code. However, in
this instance, the company code "global data" is not copied. If you create a company code using
the "Copy" function, most of the "global data" is also copied.
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Further notes
You should create a company code according to tax law, commercial law, and other financial
accounting criteria. As a rule, a company code in the SAP system represents a legally
independent company. The company code can also represent a legally dependent operating
unit based abroad if there are external reporting requirements for this operating unit, which
can also be in the relevant local currency.
For segment reporting according to Anglo-American accounting practices, you need to

represent the regions in which the company has significant dealings. This reporting data can be
generated entirely on the basis of company codes.
For processing company codes, there are extended functions that you can access with the
function call "administer" or "Copy, delete, check company code". The entry in the company
code table is processed in these functions as well as all dependent Customizing and system
tables in which the plant is a key.
For more information on the extended functions, see Copy/Delete/Check/Process Project IMG.
In addition to these functions, there is also the "Replace" function. You use this function if you
want to change a company code key. This is only possible if no postings have been made in the
company code that is to be replaced. You should therefore only use this function for newly-
created company codes.
Activities
1. Create your company codes based on the reference (company code 0001) delivered with the
standard system. SAP recommends using the function "Copy Company Code" to create your
company codes.
2. Go to the activity "Edit Company Code Data" and change the name, description, address, and
currency. Maintain the company code data that has not been copied.
3. Use the project IMG view to post process data that is changed automatically. You can also
carry out post processing at a later stage since the system keeps the generated project view.
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Edit, Copy, Delete, Check Company Code-(Child Company)

 Definition
 Edit, Copy, Delete, Check Company Code SIMG_CFMENUSAPCOX02
Double click on
Double Click on
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Click on
Click on Enter SAVE
To fill the details information about Child Company
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Click on
(To view the postal address in detail)
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(Address print preview)
Click on Click on OK Button
Click on OK Button
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3) Assign company code to company

Assignment
In this section you create references between the organization units you have defined.
Once you have linked the organizational units, you have built the framework for processing
business transactions.

 Assignment
Assign company code to company SIMG_CFMENUSAPCOX16
Double Click on
Click on
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(Put child company code)
Enter Save Button
Click on OK Button
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4) Define Business Area

Define Business Area
Use
In this section you create business areas. A business area is an organizational unit within
accounting that represents a separate area of operations or responsibilities in a business
organization.
When defining a business area, you enter a four-character alphanumeric key and the name of
the business area.
In a client, you can set up several business areas to which the system can assign the postings
made in all company codes defined in this client. To ensure consistency in document entry, you
should give business areas the same name in all company codes.
You make all other specifications for your business areas in the Financial Accounting
Implementation Guide.
Activities
If necessary, create business areas.
Further notes
For more information about business areas, see the SAP Library under Financial Accounting ->
General Ledger Accounting -> Business Area.

 Definition
Define Business Area SIMG_CFMENUSAPCOX03
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Double click on
Click on
Enter Save Button
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Click on OK Button
5) Define Functional Area

Define Functional Area
In this activity you create your functional areas.
Example
Typical functional areas are Sales, Production, Marketing, Administration and Research &
Development.
Activities
Create the functional areas you require.

 Definition
Define Functional Area SAPC-OKBD
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Click on
Click on
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Click on OK Button
6) Maintain FM Area
Maintain FM Area
In this step, you create your financial management (FM) areas. The FM area is an organizational
unit in accounting which structures the business organization from the perspective of Cash Budget
Management and Funds Management.
You define the functional characteristics of the FM areas for Cash Budget Management and Funds
Management separately in the respective Implementation Guide.
To be able to use the integration of the SAP system, you must link the FM areas with organizational
units from other applications. For example, if you specify a Funds Management account assignment
(such as a commitment item or funds center) when creating a document in Financial Accounting,
the system must determine an FM area so that it can transfer the data to Funds Management. You
must specify how the corresponding FM area is to be determined.
The system derives the FM area from the company code when you assign the company code to an
FM area. Several company codes can be assigned to an FM area.
This assignment is made in the second step whereby you assign each company code relevant for
Cash Budget Management or Funds Management to an FM area. More information on this can be
found in step "Assign Company Code to FM Area"
Standard settings
The FM area 0001 is already created in the SAP standard system.
Activities
Create FM areas using a 4-digit key and define a name and the FM area currency for each FM
area.
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You can choose the FM area currency independently of the company code currency.
If you want to use this function, you must create an additional local currency (currency type) that
corresponds to the FM area currency in the Implementation Guide (IMG) of Financial Accounting for
the corresponding company codes. To do this, use IMG activity Define Additional Local Currencies.
You must then assign the currency type of the additional local currency to the FM area. To do this,
use the IMG activity Make Other Settings in the IMG of Funds Management.
If you want to change the FM area currency again, you must be aware of the following: As soon as
you have posted the actual data in the feeder components (Financial Accounting, Materials
Management), you are not allowed to change the FM area currency.
You maintain all other definitions for the FM area (such as fiscal year variant) later on.

 Definition
Maintain FM Area SIMG_CFMENUSAPCOF01
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Double Click on
Click on
Enter Save Button
Click on OK Button
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7) Define Segment
Define Segment
Use
In this IMG activity, you define your segments.
If you then define your profit centers, you can enter an associated segment in the master record of
a profit center. The segment is then derived from the assigned profit center during posting.
If you want to derive the segment by other criteria, you can implement a Business Add-In (BAdI). To
do this, go to Customizing for Financial Accounting (New) and choose Derive Segment.

 Definition
Define Segment V_FAGL_SEGM
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Double Click on
Click on
Enter Save
Click on OK Button
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8) To view the organization structure
To view the organization structure T-Code - EC01
Enter
Click on
Click on
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Click on OK
Ctrl+F (Find)
Click on OK
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
 (Always put child company code to view the organization structure)
 Click on
Double click on
Again Double click on
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Click on

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2. USER MANUAL FOR ENTERPRISE STRUCTURE V.01

AMOL B. GIRI (MBA-FINANCE)

SAP Basic Information

Go to SAP Login Screen

Put the User ID and Password

SAP Basic Information

Use of Transaction Code according to screen (T-CODE)

01. USER MANUAL FOR ENTERPRISE STRUCTURE V.02

1) Define Company-(Parent Company)

2) Edit, Copy, Delete, Check Company Code-(Child Company)

3) Assign company code to company-

4) Define Business Area

5) Define Functional Area

8) To view the organization structure

Enter “SPRO” in command field

 Click on IMG Activity.

1) Define Company-(Parent Company)

Create your companies.

Define Company-(Parent Company)

 SAP Customizing Implementation Guide

Click on Save Button

Create TR as per your Configuration

Click on Save Button

Create own request

2) Edit, Copy, Delete, Check Company Code-(Child Company)

 Company code key

 Company code name

SAP recommends the following procedure when creating company codes:

For segment reporting according to Anglo-American accounting practices, you need to

Edit, Copy, Delete, Check Company Code-(Child Company)

 SAP Customizing Implementation Guide

Click on Enter SAVE

To fill the details information about Child Company

(Address print preview)

Click on Click on OK Button

3) Assign company code to company

 SAP Customizing Implementation Guide

(Put child company code)

Enter Save Button

4) Define Business Area

If necessary, create business areas.

 SAP Customizing Implementation Guide

Enter Save Button

5) Define Functional Area

In this activity you create your functional areas.

Create the functional areas you require.

 SAP Customizing Implementation Guide

Click on Save Button

The FM area 0001 is already created in the SAP standard system.

 SAP Customizing Implementation Guide

Enter Save Button

In this IMG activity, you define your segments.

 SAP Customizing Implementation Guide

8) To view the organization structure

To view the organization structure T-Code - EC01

Again Double click on

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