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 indentification 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.
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.
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.
Edit, Copy, Delete, Check Company Code
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.
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.
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 postprocess data that is changed automatically. You can also carry out postprocessing at a later stage since the system keeps the generated project view.
Maintain Controlling Area
In this IMG activity you
- create new controlling areas or
- Copy existing ones.
The controlling area is an organizational unit in Accounting used to subdivide the business organization from a cost accounting standpoint.
The controlling area is embedded in the organizational structure as follows:
A controlling area may be assigned one or more company codes.
1:1 relationship
You carry out cost accounting on a cross-company code basis.
The internal and external accounting viewpoints are identical.
1:n relationship
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. The internal and external accounting goals diverge. This method is preferred when, for example, a corporation posesses several independent subsidiaries and undertakes centralized cost accounting for all.
If you implement the CO (Controlling) component, you must maintain basic data and control indicators in the for the controlling area. You make these settings in the Controlling IMG.
Recommendation
We recommend that you use the controlling area "0001" supplied by SAP "0001" or that you copy this controlling area to your own controlling area and then making adjustments to suit your needs. Preliminary settings such as the definition of number ranges are already maintained for this controlling area.
Activities
Copy Controlling Area "0001"
1. Adapt the default settings to your country.
a) To do this, choose Enterprise Structure -> Country-Specific Settings in Customizing.
b) Choose Change Country-Specific Settings and Country version.
2. Create your own controlling area with company code as a Copy of controlling area "0001" with company code "0001".
3. Adjust this copy to your requirements.
a) To do so, in the dialog box, choose Maintain controlling area.
b) Select your controlling area and change the settings.
Create Controlling Area
1. Choose Maintain controlling area
2. Choose New entries and enter the basic data.
3. Enter a key and a name for your company code.
4. Specify the allocation of company codes and controlling area.
5. Make the currency settings.
6. Speciy a chart of accounts for the controlling area.
7. Enter a fiscal year variant.
Delete controlling area
You can delete the controlling areas supplied by SAP if you:
- Create all organizational units afresh.
- Have created all organizational units using the SAP delivery data.
To do so, create your own controlling area with company code as a copy of the controlling area "0001" with company code "0001".
Now delete the controlling areas you no longer require.
To delete a controlling area supplied by SAP, proceed as follows:
1. In the dialog box, choose Delete SAP Delivery Data.
2. From the list, select the controlling areas you want to delete.
3. Choose Delete.
Note on deleting SAP delivery data
Further Notes
In cross-company code cost accounting, where a controlling area includes several company codes with differing currencies, assign the group currency as controlling area currency. The related company codes must all use the same operative chart of accounts .
During number assignment for organizational units in the controlling area ( cost center, profit center, etc.), keep the possible addition of other company codes in mind as you work.
All internal allocation transactions refer only to objects belonging to the same controlling area.
Personnel Areas
The personnel area is an organizational unit that represents a specific area of the enterprise and is organized according to aspects of personnel, time management and payroll. A personnel area is divided into several personnel subareas. Please note that the personnel subareas contain the business characteristics. To assign the business characteristics, you must have set up at least one personnel subarea for each of your personnel areas even if you do not use personnel subareas in your enterprise structure.
When you define the personnel areas, the setting up of the enterprise structure has begun. You assign characteristics to these personnel areas in subsequent IMG steps. These steps are dealt with in the IMG at the same time they are established in a business sense.
Example
Company X has three production plants in Germany: Hamburg, Cologne and Berlin. In the SAP System these would constitute three personnel areas.
Requirements
Familiarize yourself with your enterprise structure.
Standard settings
The standard SAP R/3 System contains several sample personnel areas.
Recommendation
Always create personnel areas with a four-character key.
When defining personnel areas, consider their effects on the areas mentioned above. If necessary, compare the definition of the personnel areas with the persons responsible for payroll and time management.
Further notes
Enhanced functions are available for editing personnel areas. You can call them up using the function call "Copy, delete, check personnel area". When you use this function, the entry in the personnel area table, as well as all the dependent customizing and system tables that contain the personnel area as a key are edited.
For additional information on these enhanced fucntions, refer to Copy / delete / check / edit project IMG.
Activities
1. Create your personnel area.
2. Copy the SAP template.
3. On the detail screen, maintain the address of the personnel area.
4. Delete the sample entries that you do not need.
5. Use the enhance functions to copy, delete, or check the environment data for a personnel area.
6. Use the project IMG view to review the data that was changed automatically. Because the project IMG view remains, you can carry out the review at a later date.
Personnel Subareas
A personnel subarea is an organizational unit that represents a specific area of the company organized according to certain aspects of personnel, time management and payroll. The following business subtasks belong to the personnel subarea:
- Defining of pay scale and wage type structure
- Defining planned working hours
- Defining appraisal criteria
Example
The Berlin site of Company X is physically separated by a railroad line. This could mean that two different tax or employment offices are responsible for the respective areas. In this case, you would define a personnel area "Berlin" and two personnel subareas.
Requirements
Personnel areas must be created.
Standard settings
The standard SAP system contains the personnel subarea "blank" which you can use if you do not need any additional personnel area subdivisions.
Recommendation
If you do not use personnel subareas in your enterprise structure, you must still set up at least one personnel subarea (for example, "blank") for each personnel area so that you can assign the business characteristics to it.
Further notes
Additional functions exist to edit personnel subareas. You can access these functions by calling up the function "Copy, delete, check personnel subarea". When you use these functions, the entry in the personnel subarea table as well as all the dependent customizing and system tables where the personnel subarea is used as a key, are edited.
Here you will find information on the additional functions Copy / Delete / Check / Edit project IMG.
Activities
1. Create your personnel subareas.
2. Copy one of the templates contained in the standard SAP System.
3. Delete all the sample entries that you do not need.
4. Use the additional functions to copy, to delete or to check the environment data for the personnel subarea.
5. Use the project IMG view to postprocess data that was changed automatically. Because the project IMG view remains the same, you can carry out the postprocessing at a later date.
Employee Groups
The employee group allows you to divide your employees into groups and allows you to define their relationship to the enterprise. The following
essential organizational functions can be carried out using the employee group:
- generating default values when entering data; for example, for the payroll accounting area or for the basic pay of the employee
- generating a selection criterion for evaluations
- generating a unit for the authorization check
Example
You want to distinguish your employees between persons actively employed, pensioners and early retirees.
Standard settings
The standard SAP system contains some samples of employee groups.
Recommendation
Transfer at least the employee groups 1 and 2.
Activities
1. Check the standard employee groups.
2. Create new employee groups if necessary.
3. Delete all sample entries not required.
Employee Subgroups
The employee subgroup represents a subdivision of the employee group. When you define employee subgroups, you are essentially begun to set up
your personnel structure. Features are allocated to this in later steps. These steps are dealt with at the spot where they are established in a
business sense.
The following business subtasks are provided among other things:
- specification of processing in payroll accounting
- specification of validity of primary wage types
- specification of validity of work schedules
- specification of validity of pay scale groups
- specification of validity of time quota types
Example
Within the employee group Active, you want to distinguish between industrial workers, pay scale employees, trainees and executive employees. This
distinction enables you to do the following:
- you can carry out evaluations for which certain employee subgroups can be included or excluded.
- Certain personnel administrators should only be allowed to edit the data of certain employee subgroups.
- Depending on the employee subgroup, you can generate different default values in master data processing (for example, executive employees
have entitlement to more leave than pay scale employees).
Requirements
You need to have created your employee groups. In addition, check which means of dinstinction you want to use for employees with regard to
evaluations, authorizations and business subtasks.
Standard settings
The SAP standard system contains some samples of employee subgroups.
Recommendation
When you define employee subgroups, bear in mind the effect they can have on the above-mentioned areas. If necessary, compare the employee
subgroups with the persons in charge of payroll accounting and time management.
Further notes
Additional functions exist for editing the employee subgroup. You can access these functions by calling up the function "Copy, delete, check employee
subgroup". When you use this function, the entry in the employee subgroup table as well as the entries in the dependent customizing and system
tables where the employee subgroup is used as a key, are edited. Here you find information on the additional functions Copy / Delete / Chekc / Edit
project IMG.
Activities
1. Check the standard employee subgroups.
2. Create your employee subgroups in the numeric area.
3. Use a reference subgroup from the SAP system.
4. Delete all the sample entries that you do not need.
5. Use the additional functions to copy, delete or to check the environment data for the employee subgroup.
6. Use the project IMG view to postprocess the data that was changed automatically. Because the project view always remains the same, you can carry out the postprocessing at a later date.
Assignment of Personnel Area to Company Code
In this step, you allocate each of your personnel areas to one company code. When you create a personnel number, the corresponding company code is allocated to it in the infotype Organizational allocation (0001), depending on the enterprise structure in which the employee is situated.
Example
The Hamburg, Cologne and Berlin sites of Company X all belong to one company code.
Requirements
If you do not implement the Financial accounting component, you must first of all Create the company codes.
A further requirement is that you need to have created the personnel areas. Get an overview of the legal structure of your company.
Activities
1. Allocate your personnel areas to their corresponding company code.
Note that personnel areas which are allocated to different country groupings cannot belong to the same company code.
2. Delete all sample entries not required.
Further notes
If at all possible, do not change the allocation of company code to personnel area once your system is productive. If this should still prove to be necessary, the organizational allocations of the employees involved must also be adjusted. Report RPUP0001 does this.
Assign employee subgroup to employee group
In this step, you assign your employee subgroups to their respective employee groups. In addition to this, you determine whether the employee
group/employee subgroup combinations are allowed for the country groupings.
Example
The employee subgroup for trainees ahould be assigned to the employee group active and not to the employee group pensioners.Requirements
You must have created the employee subgroups and employee groups.
Activities
1. Assign your employee subgroups to the relevant employee groups.
Familiarize yourself with the SAP sample entries.
2. Delete all the sample entries that you do not need.
3. Define the permitted country groupings for the employee group/subgroup combinations.
