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SAP FICO Enterprise Structure
Details
Get a comprehensive understanding of Enterprise Structure in SAP FICO module through this SAP FICO training by Uplatz.
Enterprise structure in SAP is an organizational diagram that shows how the whole group is mapped in SAP. It consists of some organizational units of different modules created for a specific business-related reasons and are grouped together. Organizational units include legal company entities, sales offices, profit centers, etc.
SAP FICO enterprise structure consists of:
1) Operating concern is the main organizational unit of profitability analysis module or known as COPA. COPA acts as a management tool to analyze specific markets and business segments.
2) Controlling area in SAP FICO enterprise structure is the central organizational unit within CO Module and assigned to operating concern. It’s an environment where internal reporting to the management is done by managing cost and revenue.
3) Company is the highest organizational structure in FI Module. A company is an organizational unit which can be used to roll up financial statements of several company codes. Company can consist of one or more company codes.
4) Company Code is the smallest organizational unit in Financial Accounting module for which a complete self-contained set of accounts can be drawn up for the purposes of external reporting. It is the most important part of enterprise structure as assigned to most of the other modules for integration.
5) Chart of accounts is a variant created at the client level in FI which contains the structure and the basic information about general ledger accounts. After its creation we assign chart of accounts to company codes in SAP enterprise structure.
6) Cost center is an organizational unit in a controlling area representing a clearly delimited location where costs occur. One type of hierarchy needs to be created for Cost Center Accounting where cost centers should be assigned and also to be grouped for reporting purposes.
7) Profit centers are generally defined by the organization on the basis of responsibility. It will let you determine profits and losses by profit center using their period accounting or the cost-of-sales approach.
8) A Charts of Depreciation is the highest level organization structure in SAP Asset Accounting which holds the entire asset accounting relevant settings such as Depreciation Areas and the depreciation methods that are specific to a country.