Step by Step Documents

A STEP-BY-STEP GUIDE
ON SAP ENTERPRISE
STRUCTURE
CONFIGURATION –
FINANCE MODULE
Defining enterprise structure in the SAP system is the most critical setup in an
implementation. This process commences after requirement gathering and the
to-be blueprint document has been approved. This involved mapping your
required structure into SAP existing organizational units and arriving at the
enterprise structure reflecting the client’s business.
This document is a step-by-step guide on setting SAP enterprise structure and
the organizational units
Organizational Units in Financial Accounting (FI):

1. Client:
A technically self-contained unit within the SAP system that has its
master records and tables. SAP system comes delivered with client 000
and 001.
Obligatory OU includes – Client, Company code, and credit control area

while the optional are company, Business area, Functional area, financial
management area, profit center, and segment.
2. Define a Company (Tcode: OX15):

A company is an organizational unit in SAP for which you can draw
individual financial statements to the legal requirements of the country
where it is incorporated.
Support Ticket Scenario: AB Synergy is operating in two countries -USA
and Nigeria. In this similar case, you are required to set up two
companies.
A company can consist of one or more company codes. A company can have
one local currency in which its transaction figures are recorded. All company
codes within a company must use the same transaction chart of accounts and
the same fiscal year variants, company code can have different currencies.
Type SPRO in the command line

IMG – Enterprise Structure – Definition – Financial Accounting – Define
Company
 Click on “Define Company”

 Click on New entry
 Fill in the company code (Six Letter Alphanumerical)

 Company name, Street, Postal code, city, select the country,
language key, and currency
 Click save
3. Define Company code (TCODE: OX02):

Click on “Edit copy, Delete, Check Company code”, and fill in the required
information.
Click “New Entries”

 Input the company details:
 Company Code: (4 Letter Alphanumerical)
 Company name,
 Select the City, Country, Currency, and language
 Click “Save”
4. Define Segment:
This can be used to describe financial position and performance by a line
of business or geographical area.
 Click on New Entries

 Input the Segment (10 letters Alphanumeric)
 Input the description and save
5. Create the chart of account:
The chart of accounts is the list of the GL accounts that may be used by
one or more company codes. There are three different types of charts of
accounts – the operating chart of accounts, the country chart of accounts,
and the group chart of accounts.
 Click on “New Entries”
 Input the code for the chart of account
 Give it a description
 Select the language
 Input the length of the GLs
 Indicate if the cost element will be created automatically or manual
6. Create Fiscal year Variant:

The fiscal year variant helps to determine the posting period from the posting
date and fiscal year entered in the accounting document
 Click on ‘Maintain Fiscal Year Variant”
 Click on “New Entries”

 Input the FV code, Description, Select Calendar year, input 12 as the
number posting period, Input 4 for No. of special periods,
 Click Save
 Highlight the new created FV and click “Period Texts”
 Below screen showed up
 Select the language
 Input 1 for January, Type the abbreviation and the text. Repeat same
to December and included the 4 special period
7. Assign company code to Fiscal year variant:

 Select the Fiscal Year Variant
 Save
8. Define Variants for open posting periods:

 Click “New Entries”
 Input the Variant Identifier and Name
9. Assign variants to company code:
 Input the variant for the company code
10. Define controlling area:

 Click on “Maintain Controlling Area”
 Double click on “Maintain Controlling Area”

 Click “New Entries”
 Input the to-be controlling area code, Name,

 Select “Cross-Company-code cost accounting” in Assignment control
 Currency type – 30
 Currency – Select the Client currency
 Select the Chart of account
 Select the Fiscal year variant
11. Define Credit Control Area (OB45):

Used both in SAP FI-A/R (Account Receivable) and SD functional areas. The
credit control area provides a method of granting and monitoring credits for
customers.
 Click on new entries

 Input the currency
 Update – select 000012
 Select the FY variant
 Fill the credit limits for the client’s customers
A client can contain one or more credit control areas – which in turn can be attached
to one or more company codes – but no company code can be allocated to more
than one credit control area. When you assign more than one company code to the
same credit control area, the currency of the credit control area may be the local
currency of any of the participating company codes. When the company code
currency and the credit control area currency are different, the receivables are
converted into credit control area currency
12. Assign company code to company (OX16):
 Click on “Assign company code to company”

 Select the company
 Click save
13. Assign company code to Credit Control Area (OB38):
 CCAR: Select the Credit Control Area

 Select overwrite CC area
14. Assign company code to FM area(Tcode : OF18):
You can assign more than one company code to a single FM area.
 Select the FM area

 Save
15. Maintain company code Global Data (OBY6):
Maintain company code, company, chart of account, fiscal year, posting
year variant, etc
 Click “Enter Global Parameters”

 Double click on the company name
 Select the chart of account, credit control area, fiscal year variant,
FM area, Country chart of account, Document entry screen – 2, Field
status variant, Posting period variant, etc
 Tick the Enable amount Split box. This is to enable amount split
posting for the company code.
 Click save
16. Assign controlling area to company code (OX19):
 Highlight the newly created controlling area

 Click on “Assignment of company code(s)
 Select the company code

 Click save
17. Create profit centers:
You need to first

(A) create the profit center Standard Hierarchy (OKE5)
Set the controlling area you want to set up
 Click on “Maintain Controlling Area Setting”
 Click on “Maintain Controlling Area Setting”
 Input the standard Hierarchy name

 Select “Elim. Of Int. Business Vol”
 Choose controlling area currency type
 Choose the profit center local currency
 Click save
(B)Define profit centers groups (KCH1):

Follow the IMG navigation to “Define profit center group”
 Press Enter
 Add the profit center group as designed in the configuration

document and save
(c) Define profit center (KE51):
 Click “Create profit center”
 Fill in the basic data – The profit center code, name, long text
 Select the group and segment
Click on the company code tab and confirm the information are right
Click on Activate in the Top left corner
The mandatory and optional organizational units in FI: company, company

code, credit control area, business area, segment, functional area, financial
management area, and profit center have been configured successfully
The client sits at the top of the SAP system hierarchy, any specifications that
you make or data that you enter at this level are valid for all company codes
and all other organizational structures within the client. The controlling area is
the central organizational structure in SAP consulting, just like a company
code, it is a self-contained cost-accounting entity for internal reporting
purposes.
The creation of a profit center is master data related and can be done after all
mandatory FI configurations.

Step by Step Documents

Uploaded by

Copyright:

Available Formats

Step by Step Documents

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Step by Step Documents

Uploaded by

Copyright:

Available Formats

A STEP-BY-STEP GUIDE

Organizational Units in Financial Accounting (FI):

Obligatory OU includes – Client, Company code, and credit control area

2. Define a Company (Tcode: OX15):

Type SPRO in the command line

 Click on “Define Company”

 Fill in the company code (Six Letter Alphanumerical)

3. Define Company code (TCODE: OX02):

Click “New Entries”

 Click on New Entries

6. Create Fiscal year Variant:

 Click on “New Entries”

7. Assign company code to Fiscal year variant:

8. Define Variants for open posting periods:

 Input the Variant Identifier and Name

9. Assign variants to company code:

 Input the variant for the company code

10. Define controlling area:

 Double click on “Maintain Controlling Area”

 Input the to-be controlling area code, Name,

11. Define Credit Control Area (OB45):

 Click on new entries

 Fill the credit limits for the client’s customers

12. Assign company code to company (OX16):

 Click on “Assign company code to company”

 CCAR: Select the Credit Control Area

14. Assign company code to FM area(Tcode : OF18):

 Select the FM area

 Click “Enter Global Parameters”

 Highlight the newly created controlling area

 Select the company code

17. Create profit centers:

You need to first

 Input the standard Hierarchy name

(B)Define profit centers groups (KCH1):

 Add the profit center group as designed in the configuration

The mandatory and optional organizational units in FI: company, company

You might also like