Chapter 3

Organizational Structure
• The system can be configured to reflect a company’s
organizational structure and has the flexibility to
incorporate future changes in that structure.

• Chapter Objectives
– Describe the Organizational Structure and how it
relates to the Financial Accounting module.
– Define each Organizational Unit in the structure
related to the Financial Accounting module.

4.6fi_03.1 Organizational Structure

 Hierarchy Workshop

Option 1

Option 2

Option n

4.6fi_03.2 Organizational Structure

 SAP Hierarchy Structure
FINANCIAL MATERIALS MANAGEMENT
Bus. Area
Sto.Loc.
Company 1000
Plant 0001
0001
Bus. Area 0001
Sto. Loc.
2000
Client 0002
Company
Bus. Area
3000 Code Sto. Loc.
Company Plant 0003
0002 0002

Company Plant
0003 0003

SALES & DISTRIBUTION Company Code

Sales
Organization 1000 2000 3000

Distribution
Channel 10 20 10 10

Division 01 02 01 02 01 02 01

4.6fi_03.3 Organizational Structure

 SAP Organizational Structure
Client

Controlling Chart of Chart of Credit

Area Accounts Depreciation Control Area

Purchasing
Group Dunning Company Business
Area Code Area

Purchasing Sales
Org. Plant Organ.

Shipping Storage Distribution Sales Sales

Point Location Channel Office Group

Loading Division
Point

4.6fi_03.4 Organizational Structure

 Financial Module
(Organizational Structure)

Client

Chart of Accounts

Credit Control Area

Company Code

Dunning Area

Business Area

4.6fi_03.7 Organizational Structure

 Client (Organizational Structure)

Client

General Electric

4.6fi_03.8 Organizational Structure

 Client - Company Code
(Organizational Structure)

Client

General Electric

Company Code Company Code Company Code Company Code

Aviation Services Lighting Appliances Aircraft Engines

4.6fi_03.9 Organizational Structure

 Client - Company ID -
Company Code
Client
GE

Company ID Company ID
Consumer
Aviation
Products

Company Company Company Company

Code Code Code Code
Aircraft Aviation
Lighting Appliances
Engines Services

4.6fi_03.10 Organizational Structure

 Client - Company Code -
Business Area
Client
General Electric

Company Code Company Code Company Code

Transportation
Aviation Services Aircraft Engines
Systems

Business Area Business Area

Engine Repair Engine Sales

4.6fi_03.11 Organizational Structure

 Client - Chart of Accounts -
Company Code
Client
General Electric

Chart of Accounts Chart of Accounts

CAUS CAEU

Company Code Company Code Company Code

Aircraft Engines Aviation Services Global Finance

4.6fi_03.12 Organizational Structure

 Client - Company Code -
Dunning Area

Client

General Electric

Company Code Company Code

Aviation Aircraft
Services Engines

Dunning Dunning Dunning

Area 1 Area 1 Area 2

4.6fi_03.13 Organizational Structure

 Client - Credit Control Area -
Company Code

Client
General Electric

Credit Control Area Credit Control Area

CAUS CAEU

4.6fi_03.14 Organizational Structure

 Benefits of the SAP
Organizational Structure
Production Planning Financial Accounting

Company
Plant
Code

Controlling Human Resources

Client
Controlling Personnel
Area Area

Sales and Distribution Materials Management

Sales Purchasing
Area Organization

4.6fi_03.15 Organizational Structure

 Organizational Structure
Chapter Summary
Key Terms
– SAP Hierarchy Structure – Shipping Point
– Client – Loading Point
– Chart of Accounts – Storage Location
– Credit Control Area – Distribution Channel
– Company Code – Sales Organization
– Business Area – Division
– Dunning Area – Sales Office
– Purchasing Organization – Sales Group
– Purchasing Group – Sales Area
– Plant – Legal Consolidation

4.6fi_03.16 Organizational Structure