1

ENTERPRISE
STRUCTURE
IN SAP FI

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Enterprise Structure
Step 1: - Define Company

A company is the organizational unit in SAP FI for which you can draw individual financial
statements, according to the legal requirements of the country where it's incorporated.

SPRO → Enterprise Structure → Definition → Financial Accounting → Define Company

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Step 2: - Define Company Code

Company Code in SAP is the smallest organizational unit of Financial Accounting for which you
draw individual financial statements like Balance Sheet and Profit & Loss Account for purpose of
external reporting.
SPRO → Enterprise Structure → Definition → Financial Accounting → Edit, Copy, Delete, Check
Company Code

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Step 3: - Define Plant

Plant is an independent, physical and highest organizational unit in MM module. It can be

operational unit or manufacturing unit or a sales branch of an organization. From material
management view, plant can be defined as a location that holds valued stock.
Plant is responsible for planning, procurement, distribution of goods & services to customers or
other resources of an organization under one company code.
SPRO → Enterprise Structure → Definition → Logistics – General → Define, Copy, Delete, Check
Plant

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Step 4: - Define Storage Location

Storage location is the sub-division of plant where the stocks are physically stored and
maintained within a plant.
→ It is required to maintain at least one storage location for one plant.
→ One plant can have number of storage locations.

SPRO → Enterprise Structure → Definition → Material Management → Maintain Storage

Location

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Step 5: - Define Purchase Organization

Purchasing Organization is one of the important organizational units within logistics that deals
with all the procurement activities. Purchasing organization is responsible to procure materials,
and services and negotiating with the vendors.
• You can assign one or more purchase organizations to one company code.
• The relationship between purchasing organization and plant can m; n relationship, which
means one purchasing organization can be assigned to many plants or one plant can be
assigned to many purchase organizations.

Types of Purchasing Organizations

Different types of purchasing organizations are used at the plant level, company level, and
enterprise level.
1. Purchasing at the company level
2. Purchasing at the enterprise level
3. Purchasing at the plant level

Real-Time Scenario: Based on the client’s requirements, purchasing organizations are created
in the SAP system. One purchase organization can be used across all company codes or create
one purchase organization for each company code.

SPRO → Enterprise Structure → Definition → Material Management → Maintain Purchase

Organization

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Step 6: - Define Copy, Delete, Check sales Organization

• In SAP, sales organization represents an organizational unit used to controls to

distribution and sales of goods & services in the organization.
• The organization is used to negotiate the sales terms and conditions with the customers.
So sales organization is responsible for all business transactions related to sales, you
need to assign sales organization to at-least one company code in SAP.

SPRO → Enterprise Structure → Definition → Sales and Distribution → Define Copy, Delete,
Check sales Organization

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Step 7: - Define Copy, Delete, Check Distribution Channel

Distribution Channel in SAP is The Channel through which goods sold to Customer as it
may Direct sales/Whole sales/ Retail sales. It also different sales statics based on your
distribution channel.
SPRO → Enterprise Structure → Definition → Sales and Distribution → Define Copy, Delete,
Check Distribution Channel

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Step 8: - Maintain Sales office

Sales office is a geographical aspect of structure of the company. Sales office can be assigned to
one or more sales areas. When we are preparing sales order for a specific sales office, than the
specific sales office must be assigned to the same sales area to which sale order is assigned.

SPRO → Enterprise Structure → Definition → Sales and Distribution → Maintain Sales office

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Step 9: - Maintain Sales group

Group of sales employees or organizational unit (branch wise) can be defines as a sales group.
A sales office can have number of sales group, so sales group should be assigned to sales office.

SPRO → Enterprise Structure → Definition → Sales and Distribution → Maintain Sales group

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Assignment Process
Step 10: - Assign Company code to Company
SPRO → Enterprise Structure → Definition → Assignment → Financial Accounting → Assign
Company code to Company

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Step 11: - Assign Plant to company code

SPRO → Enterprise Structure → Definition → Assignment → Logistics General → Assign Plant
to company code

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Step 12: - Assign Purchasing organization to Company code

SPRO → Enterprise Structure → Definition → Assignment → Material Management → Assign
Purchasing organization to Company code

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Step 13: - Assign Purchasing organization to Plant

SPRO → Enterprise Structure → Definition → Assignment → Material Management → Assign
Purchasing organization to Plant

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Step 14: - Assign Standard Purchasing organization to Plant

SPRO → Enterprise Structure → Definition → Assignment → Material Management → Assign

Standard Purchasing organization to Plant

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Step 15: - Assign Sales organization to company code

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Assign
Sales organization to company code

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Step 16: - Assign Distribution channel to sales organization

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Assign

Distribution channel to sales organization

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Step 17: - Assign Division to sales organization

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Assign
Division to sales organization

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Step 18: - Setup Sales area

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Setup
Sales area

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Step 19: - Assign sales office to Sales area

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Assign

sales office to Sales area

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Step 20: - Assign Sales group to sales office

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Assign
Sales group to sales office

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Step 21: - Assign Sales organization -Distribution channel - Plant

SPRO → Enterprise Structure → Definition → Assignment → Sales and Distribution → Assign
Sales organization -Distribution channel - Plant

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Step 22: - Define, Copy, Delete, Check Shipping Point

SPRO → Enterprise Structure → Definition → Logistics Execution → Define, Copy, Delete,
Check Shipping Point

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Step 23: - Maintain Loading Point

SPRO → Enterprise Structure → Definition → Logistics Execution → Maintain Loading Point

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Step 24: - Assign Shipping Point to Plant

SPRO → Enterprise Structure → Definition → Assignment → Logistics Execution → Assign
Shipping Point to Plant

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In EC01 Tcode you can see your enterprise structure details

Structure → Navigation → Find the company Code

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Configuring Company Code

Step 25: - Maintain Fiscal Year Variant

SPRO → Financial Accounting → Financial Accounting Global Settings → Ledgers → Maintain
Fiscal Year Variant

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Step 26: - Posting Periods

SPRO → Financial Accounting → Financial Accounting Global Settings → Ledgers → Fiscal Year
and Posting Periods → Posting Periods → Define Variants for open Posting Periods

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Step 27: - Open and Close Posting Periods

SPRO → Financial Accounting → Financial Accounting Global Settings → Ledgers → Fiscal Year
and Posting Periods → Posting Periods → Open and Close Posting Periods

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Step 28: - Define Field status Variants

SPRO → Financial Accounting → Financial Accounting Global Settings → Ledgers → Fields →

Define Field status Variants

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Step 29: - Define Document number ranges

SPRO → Financial Accounting → Financial Accounting Global Settings → Document →

Document Number Ranges

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Step 30: - Delink your company code from Document splitting

SPRO → Financial Accounting → Financial Accounting Global Settings → General Ledger
Accounting → Business Transactions → Document Splitting → Activate Document Splitting

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Step 31: - Enter Global Parameters

SPRO → Financial Accounting → Financial Accounting Global Settings → Global Parameters for
company Code → Enter Global Parameters

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Step 32: - Define controlling area

SPRO → Enterprise Structure → Definition → Controlling → Maintain Controlling Area

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Step 33: - Assign Company Code to Controlling Area

SPRO → Enterprise Structure → Assignment → Controlling → Assign Company Code to
Controlling Area

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Step 34: - Maintain Controlling Area

SPRO → Controlling → General Controlling → Organization → Maintain Controlling Area (OKKP

Tcode)

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Step 34: - Maintain Company Codes for Materials Management

SPRO → Logistics General → Material Master → Basic Settings → Maintain Company Codes for
Materials Management

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Step 35: - Plant Parameters

SPRO → Materials Management → Inventory Management and Physical Inventory → Plant

Parameters

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Material Ledger Activation

OMX3: - Assignment of Material Ledger types to Valuation Areas

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OMX1: - Activation of Material Ledger

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CKMSTART: - Production startup of Mat. Ledger

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