SAP Business ByDesign

Organizational Management
Eduardo Barrientos Gonzalez/Raúl Chavez
July 5th, 2022
Workshop Objectives

 Confirm understanding of the Organizational

Management concept in SAP Business ByDesign
 Map your organizational structure to the options
provided by SAP Business ByDesign
 Understand the steps required to create your
organizational structure
 Start to set up the organizational structure in the
SAP Business ByDesign Test tenant
 Review next steps to complete the setup of the
organizational structure

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Agenda

 Introduction
 Organizational Management Setup at a Glance
 Concept of Organizational Management
 Perform Organizational Structure Setup

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 SAP Launch
Workshop Delivery with a Prescriptive Approach

PREPARE REALIZE VERIFY LAUNCH

1 Project Management
2 5 Solution Design
Organizational Workshops
1. Project Kick-off
3 Integration Preparation  2. Business Scenario
… Management 3. Org Management
4. System Administration
Project Team Enablement 4 5. Data Migration
6. Test Planning
Solution Configuration
 7. Cutover Planning
Solution Walkthrough
Data Migration
Integration Setup
6 Solution Testing
7 Cutover Planning 
…
Solution Adoption
Cutover Execution 
… indicates other streams can be plugged into the methodology …
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Agenda

 Introduction
 Organizational Management Setup at a Glance
 Concept of Organizational Management
 Perform Organizational Structure Setup
 Next Steps

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Organizational Management
Setup Process at a Glance

Learn Build Confirm

Prepare setup
Maintain Check Activate
of
org structure org structure org structure
org structure
Org Mgmnt  
Workshop

 Confirm  Completion of org  Joint Customer  After activation the

understanding structure setup in and Partner org structure is
of OM concept ByD Initial system Consultants to available to all
 Discuss customer  Guided by system review that OM scoped application
org structure documentation setup has been areas that refer to
 Start to set up the (Quick Guide) completed organizational data
org structure in successfully in business
ByD Initial system  Customer is processes
reflected in ByD
system (with legal,
financial, reporting
lines)

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Agenda

 Introduction
 Organizational Management Setup at a Glance
 Concept of Organizational Management
 Perform Organizational Structure Setup
 Next Steps

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Organizational Management Defined

Organizational Management is the central source of organizational information in

SAP Business ByDesign
– It models the company’s organizational structure using org units that represent departments or divisions
– It stores legal, financial, reporting line and functional information
– It provides a unified, graphical representation of a company’s information in an “Org Chart” view

Organizational Management details are accessed for multiple SAP Business ByDesign
processes, such as:
– What is the physical location of the company and what other business residences exist?
– What are the cost and profit centers for the general ledger?
– How are the sales operations structured?
– Which department owns tasks related to Cash & Liquidity Management?
– Which reporting line manager is responsible for approving an employee‘s leave request?

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Organizational Units

The first step to building an organizational structure within SAP Business ByDesign is to “draw” the
structure of the company, taking into account the various hierarchies.
Each box within the chart is an Organizational Unit which represents a department and/or division
within the company.

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Definitions

Each Organizational Unit is then assigned relevant Definitions which describe what it
represents within the enterprise, such as a company, cost center or reporting line.
Comp
an

e
Lin

Attributes corresponding to the definitions are also

y

Bu
g

Ressines
tin

ide s specified, such as the default currency for a company

or

nce
p
Re

or the address of a business residence.

Prog
ra m

m ent
Cos

Se g
tCen
r
nt e

te r
e
fit C
Pro

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Organizational Unit Functions

Each Organizational Unit is also assigned relevant Functions, which identify for
SAP Business ByDesign which departments own the tasks for the associated
business processes.

Do employees in this
department own the
tasks related to customer
invoicing? If yes, then
check the box.

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Key Concepts

To ensure an appropriate OM the following guiding principles exist:

Time Dependency
 All information in OM is maintained & stored time dependently.

Active Version vs. Planning Version

 Make changes in the planning area without impact to production, until you are ready to activate.
 Ability to partially activate changes for specific org units or full activation of the entire structure.

Consistency Checks
 Embedded checks for business constraints that describe mandatory relationships between organizational units
or properties that must be fulfilled (i.e. a cost center must have a company above it).
 Built-in veto checks to verify that a change does not invalidate business processes or existing application data,
such as deleting a sales unit that is referenced in a sales order.

Deviation between Standard and Legal Hierarchy

 Standard hierarchy defines where the org unit reports to and how costs are aggregated.
 Legal hierarchy indicates to which business residence / company an org unit belongs.
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Related Concepts

Assignment of Employees and Service Agents

 The org unit to which employees and service agents are assigned defines their cost center, business residence
and personnel manager.
Company to Business Partner Integration
 The system automatically creates a corresponding business partner for each company.
Business Residence to Logistics Integration
 A site is automatically created for every business residence, for use in logistics.
Access Management
 The organizational structure is used to control access rights for users in the system.
Work Distribution
 Define the distribution of work based for one or more organizational units, such as one department handling all
sales in a specified region.
 Set-up rules to define specific users as responsible employees, approvers, or alternative approvers for work items
of specific categories, such as liquidity management.
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Example Organizational Structure:
Enriched with Definitions and Functions

Address: Kaiweg 40
12345 Kiel
Country of Registration: DE
Currency: EUR

Company

Segment
Address: Kaiweg 40
12345 Kiel Profit Centre

Bus. Residence Bus. Residence

Reporting Line
Address: Seestr.1A
Cost Centre 76543 Lindau
Cost Centre Type: 30 (Admin)

Reporting Line Functions:

Reporting Line Sales Organization
Cost Centre Profit Centre
Cost Centre
Marketing
Reporting Line Cost Centre

Reporting Line
Functions:
Cost Centre
Cash Flow Mgmt.
Financial & Mgmt. Acct.
Customer Invoicing
Supplier Invoicing Cost Centre Cost Centre
Human Resources Functions:
Sales Legal Definitions
Functions: Functions: Managerial Definitions
Production Sales Reporting Definitions
Warehousing Functions
Attributes
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Organizational Management
System View

The OM work center contains

three main views:
1. View - Org Structures
Overview section:
In this view you can create a Graphical representation
company’s org structure of organizational units.
respectively change it if necessary.

2. View - Job Definition

This view provides the possibility to
create jobs
(e.g. accountant, sales
representative).

3. View - Work Distribution

Work can be distributed to specific Details section:
org units by creating rules. Determines the properties
for each organizational unit.

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