Organizational Structure

1 In SAP organization structure it plays the major role to record(post) the transactions, tracking and
analyzing transaction.
2 At the organization structure level, we can be able to post transactions, analyze transactions and
extracting the reports.
3 We can finalize the org units (Org structure) by considering the requirement of legal and also
internal reporting requirement.
FI Org Units (FI Organizational Units)
1. Company
2. Company Code
3. Profit Center
4. Segment
5. Business Area

Company Code:
1. It Represents the Legal Entity of the Organizations
2. Company code is defined a legal entity level
3. We can be able to post the financial transactions, tracking and analysis we can do at the company
code level.
4. The book of the accounts can be maintained at the company code level
5. The financial statement like profit and loss A/C, balance sheet can be extract at the company code
level

Profit Center / Segment /Business Area:

1. By using either profit center or segment or business area, we can get the financial statements, and
also books of the accounts at the business unit level or strategic division unit or Location wise or
Branch Wise or Retail Store wise
2. To know the business unit performance
3. To maintain or to post the transaction, track the transaction and analyze the transactions and
extracting reports at the business unit level.
4. To get the financial statement, that is profit and loss A/c, balance sheet at the business unit level.
5. To get the ROI-(Return on investment) at business unit level.
 6. Profit centers can be created maximum 10-digit code either numeric or Alpha numeric Codes
In Our class example:
We are using Profit center functionality to get financial statements at SUB Level SBU (Strategic Business
Units)
Same Profit Center can be used Across the Company Codes
Profit center:
 SAP Definition – an organizational unit that reflects a management-oriented structure of the
company and for which an individual period result can be determined
 The division of a company into profit centers makes it possible for management responsibility to be
delegated to these local organizational units
 Profit center acts like a company within the company
 Traditionally had a standalone ledger in SAP, now can be activated directly in the New GL
 Business Area and Profit Center are not typically used together
 SAP focus for future developments in profit center vs. business area

Business Area:
 SAP Definition – Organizational unit of external accounting that corresponds to a specific business
segment or area of responsibility in a company.
 Movements in value entered in Financial Accounting are assigned to business areas.
 Used primarily for reporting purposes, cannot assign responsibility like some other objects (i.e.
Profit Center)
 Business Area is independent of Company Code
 Role has diminished with the introduction of the New GL as the distinction between the objects
used for internal and external reporting has diminished
 Optional and not as commonly used as previously – Role is taken more by profit center or segment
Segment:
 SAP Definition – Division of a company for which you can create financial statements for external
 Used to satisfy GAAP or IFRS requirements for some companies to disclose segment reporting
 Profit Centers can be used to replace or in conjunction with Segment to satisfy this requirement
 Profit Centers are assigned to a segment

Functional area:
 SAP Definition – Account assignment characteristic that sorts operating expenses according to
functions, for example:
 Production
 Administration
 Sales
 Research and development
 Used to produce what SAP calls Cost of Sales Accounting
 Assigned based on the other objects involved in the transaction or through rules.
 For example – $10 posted to an office supplies GL with a R&D cost center is tagged with the
Research and Development functional area
Company code creation:
Company codes can be defined maximum 4digit code either numeric or Alpha numeric codes

Copy from the standard Company code.

Click on Continue.
Back and click on Edit company code data
Click on position and enter the company code.

Then change the company code name and description.

Then Click on Save button to save the changes.

Again, click on the Address details

Change the address details.
Click on enter & Save.

Create the company code H200

 VARIANT PRINEIPLE:
1. Variant principle defined at the client level (Global Level) and the same variant can be assigned to
the multiple company code.
2. Variant it contains the customization.
3. By using variant concept, we can reduce the duplication of configuration and can be applied same
controls at a same time across the company codes by assign the same variant to the multiple
company codes
There are four types of Variant principles, these settings can also be called as Global Parameters
1. Fiscal year variant
2. Posting period variant
3. Field status variant
4. Chart of account (COA).

Chart of account (COA):

1. COA defines the Structure of GL accounts (Accounting Structure)
2. COA contains the list of GL Accounts.
3. COA can be called as index or directory of the GL Accounts.
4. COA defined at the client (Global) level
OPERATIONAL CHART OF ACCOUNT:
1. Operational COA is mandatory for the company to post the financial transaction.
2. All the financial transaction posted against only operational COA GL Account.
3. Operational COA only integrated with logistics and controlling modules.
4. Single operational COA can be assigned to the multiple company codes for those company codes
need to follow same accounting structure.
Define Chart of account (COA):
We can Define maximum 4-digit code as a numeric or alpha numeric code

Click on new entries

Change the details and save
Assign the Chart of account to company code.
Assign and Save

Define Account Groups:

 1. The account group it represents the grouping of the similar nature of the G/L Accounts.
2. The account group classify the G/L accounts.
3. The G/L account is created under the account group.
4. The G/L account group can be created at the chart of account level.
5. We need to create the account groups for each chart of account wise.
6. The account groups it controls the G/L account numbers, and it controls the G/L Account master
company code segment data field status.
7. Which fields are required or not required, optional while creating the G/L account
8. Account groups can be defined maximum up to 4-digit code either numeric or alpha numeric code.
9. G/L Account number always external number.

Click on new entries

Enter and save
Account Group Field Status:
It controls the GL master Data fields i.e. which field required / Optional / Not required
It Controls only GL master Company Code Segment Data fields (Control data Tab fields, Create / Bank /
Interest tab fields)
Example: Enable Tax category field as required for Account Group Sales

Fiscal Year Variant:

Fiscal year defines the financial year & also specifies the posting periods
The FYV specifies the how many periods can have in a fiscal year/financial year
FISCAL YEAR CONTAINS TWO TYPES OF PERIODS
Normal Posting Periods
Max-12 periods:

1 Apr
2 May
3 June
4 July
5 August
Septembe
6 r
7 October
Novembe
8 r
Decembe
9 r
10 January
11 February
12 March

Special Posting Periods (Optional):

To post in special periods Posting date should be LAST PERIOD of normal posting periods
Max-4:

Period 13
14
15
16
These are not belonged to any period definition
One for Tax adjustments
One for dividend distribution
One for yearend adjustments Etc.

FYV SPECIFIES WEATHER TO FALLOW CALENDER YEAR OR NON-CALENDER YEAR

Fiscal Year
Calendar Year Non-Calendar year
JAN-DEC Other than JAN- DEC (Apr-Mar)
CALENDER YEAR:
Those FY fallowing like calendar year & every period (no of days) should be equal to Calendar month (no of
days). Then that type of FY can be called as calendar year i.e. every period last day equal to calendar last
day
Ex. FISCAL YEAR -JAN to DEC
Here no need to define PERIOD definition
In case of calendar year, FY not required to define any period definitions.
By default, it adopts the calendar month
NON-CALENDER YEAR:
Those FY fallowing other than JAN-DEC can be called as non-calendar year.
Ex. Apr-Mar
Calendar Year Non-Calendar Year
Month Day Period Year Shift
Jan 1 31 10 -1
Feb 2 29 11 -1
Mar 3 31 12 -1 2023
Apr 4 30 1 0
May 5 31 2 0
Jun 6 30 3 0
Jul 7 31 4 0
Aug 8 31 5 0
Sep 9 30 6 0
Oct 10 31 7 0
Nov 11 30 8 0
Dec 12 31 9 0 2022
Define Fiscal year Variant (OB29):

Click one new entries:

Select the line item and click on periods
Click on period Text and maintain periods
To maintain this, click on new entries.
Save
Creation fiscal year variant (Calendar year)
Assign Company Code to a Fiscal Year Variant.

Click on the position and enter the company code.

Assign the Fiscal year variant “H1” to company code H100.
Posting period variant.
1. The posting period variant it specific which FI period open and closed to post the FI transactions.
2. The posting variant defined at the client level.
3. The same posting period variant can be assigned to multiple company codes if we want to apply
same period controls at the same time for multiple company codes.
4. If we want to control the individual company code wise, then we need to define separate posting
period variant for each company code wise.
5. The first period range contains the normal posting period.
6. The second period range contains the special posting periods.
7. Third period rage represents the Secondary GL account postings (Which is posting from CO to FI),
this is from period 1 to period 16.
8. The posting period variant can set the period controls either based on account type wise or with a
combination of account type and range of the GL account, or with combination of account type,
range of account and authorization group.
9. During the document entry or posting, the system it checks at the document header level that is all
A/C type level period is opened or not.
10. If period is closed then system it reject the entry.
11. If period is open at all account type level then it checks the individual account type level weather
period is opened or not.
12. If period is opened for all the line items in the document them system it allowed to post the
document otherwise it reject the entry.

Account Types:

A Assets
D Customers
K Vendors
M Materials
S G/L accounts

A- Assets: It Represents Balance sheet Fixed Asset GL Accounts

3000 Building GL
D- Customers
It Represents Balance sheet Debtor control GL Accounts (Bills Receivable GL), Advance Payment From
Customer, Deposits from Customer etc.

K- Vendors
It Represents Balance sheet Creditors control GL Accounts (Bills Payable GL) , Advance Payment To
Vendors , Deposits from Vendors etc.

M- Materials
It represents those GL accounts mapped in FIMM Integration under transaction key BSX (Stock GL
accounts)
 S- GL Accounts
All the GL accounts represents Account type S GL accounts by default except Account type D, K , A and
Stock GL accounts

Define Variants for Open Posting Periods

Click on new entries

Assignee the posting period variant for company code.
Click on position and give company code and assign the posting period variant
Open and Close Posting Periods
Give Posting period variant

Click one new entries

FIELD STATUS VARIANT:
The field status variant it contains the list of field status group
The field status variant defines at the client level and can be assign to multiple company codes.
FIELD STATUS GROUPS:
It contains the grouping of the fields and each field it contains the status of the field that is suppress,
required and optional.
The field status groups need to be assigned in the GL Account company code segment data tab.
The field status group in GL Account, it controls the data entry filling at the line-item level while posting the
transactions to the GL Account.
The field status group it controls which data entry fields are requires, optional, not required (suppress)
while posting to the G/L Account.
The document entry fields can be controlled in two ways.
1. Field status group in GL Account
2. Field status in posting key.
Both field stature groups in GL account and field status in posting key can be control field status of the
document entry.

Define Field status variant:

Copy from the standard one

Click on copy button and change the name again click on copy all
Select the field status variant and click on field status groups
Assign Company Code to Field Status Variants