¶ Setting Up and Managing Organizational Structure in SAP ECC
The organizational structure in SAP ECC is the backbone of enterprise data management. It defines the hierarchy and relationships between various business units and is fundamental to how SAP processes transactions across modules like Finance (FI), Controlling (CO), Sales & Distribution (SD), and Human Resources (HR). Properly setting up and managing the organizational structure ensures that business processes are accurately reflected and that reporting is meaningful and consistent.
Organizational structure in SAP refers to the arrangement of various organizational units that represent the legal, business, and functional divisions of a company. These units form a hierarchy that defines responsibility, authority, and workflow within the enterprise.
- Reflects the real-world business setup
- Provides a framework for master data and transactional data
- Ensures compliance with company policies and statutory requirements
Depending on the SAP module, the organizational elements vary. Below are the commonly used components:
- The highest hierarchical level in SAP.
- Represents the enterprise as a whole.
- Data is separated by client, ensuring data security and segregation.
- The smallest organizational unit for which a complete, self-contained set of accounts can be drawn up.
- Represents a legal entity.
- Mandatory for Financial Accounting (FI).
- Represents a production facility, warehouse, or branch.
- Used primarily in Materials Management (MM) and Production Planning (PP).
- Responsible for the sale of products and services.
- Key element in Sales and Distribution (SD).
- Handles procurement activities.
- Relevant for Materials Management (MM).
- Defines a unit for cost accounting.
- Used in Controlling (CO) module.
- Subdivision of a plant where materials are stored.
- Usually set up during system installation.
- All data is stored at the client level.
- Use transaction code OX02.
- Enter company code details such as address, currency, country, and chart of accounts.
- Transaction code OX10.
- Assign plant to company code.
- Specify plant-specific details.
- Transaction code OVX5.
- Assign sales organization to company code.
- Transaction code OX08.
- Link purchasing organization to company code or plant.
- Transaction code OKKP.
- Assign company codes to controlling area.
¶ Step 7: Maintain Storage Locations
- Transaction code OX09.
- Assign storage locations to plants.
After setting up, managing the structure involves:
- Modifications: Adjusting organizational units to reflect business changes.
- Assignments: Linking organizational units correctly for cross-module integration.
- Data Consistency: Ensuring master data aligns with organizational units.
- Access Control: Restricting user permissions based on organizational levels.
- Reporting: Using organizational units for financial and operational reporting.
- Plan the organizational structure with business stakeholders before implementation.
- Keep the structure simple yet scalable.
- Ensure legal and regulatory compliance at the company code level.
- Regularly review and update organizational units to reflect business changes.
- Leverage SAP best practices and templates when available.
Setting up and managing the organizational structure in SAP ECC is a critical task that impacts all business processes. A well-designed structure enables smooth operations, accurate data processing, and insightful reporting. Understanding the hierarchy and relationships between organizational units helps organizations streamline workflows, maintain compliance, and improve overall efficiency.