SAP Financial Company Organization

SAP Financial Company Organization is a important part in controlling department of ERP.In an effort to most effectively configure the SAP R/3 System, a undertaking workforce must perceive the organizational components used within R/3,in addition to the company's personal construction and requirements.

Company Code

n Steadiness sheets and revenue & loss statements, required by legislation, may be created on the firm code level.A company code designation can be required on every financially primarily based transaction entered into R/3.It will doubtless be enter at entry time or the system will derive the data from system configuration.Firm code makes use of a 4 digit alphanumeric field. A company code is an independent accounting entity (the smallest organizational ingredient for which a whole self-contained set of accounts can be drawn up). An instance is an organization inside a corporate group. It has a singular, 4 character key.The general ledger is stored on the company code level and is used to create the legally required stability sheets and revenue and loss statements.An organization code designation is required for each financially based transaction entered into R/3.This is achieved both manually or automacitally by deriving the corporate code from other information elements.

Organizational Units

With EC-CS, you can perform legal and administration consolidations. The basis for this are the organizational models firm, enterprise space, and revenue center. For every consolidation sort, a view is created.The group construction with a view might be represented in numerous hierarchies. IDES makes use of a hierarchy for authorized representation and one for regional representation.EC-CS varieties the corporate structure using consolidation groups and units. Per hierarchy,consolidation teams are defined. They represent the degrees at which the consolidation is completed.Consolidation teams may be: Subgroups (company consolidation), enterprise areas (business space consolidation), profit centers, and hierarchy nodes (revenue heart consolidation).The objects to be consolidated that lie under consolidation groups are consolidation units.Depending on the consolidation type, these are firms, combinations of corporations and enterprise areas, or combinations of firms and revenue centers.

Business Areas

You may arrange several enterprise areas to which the system can assign postings made in any company code outlined within a client.Business areas could also be used to facilitate external phase reporting across firm codes, covering the corporate's main areas of operation (product strains, subsidiaries) the place legally required.If no external business segment reporting is legally required, the enterprise area is totally non-obligatory and flexible throughout the constraints of the enterprise space definition.Business area is a 4 digit alphanumeric field.

Controlling Area

Controlling area is the structure used to capture revenues and prices for inside administration reporting.The use of a number of firm codes within one controlling space allows for the extra performance of performing cross company allocations.Firm codes inside the similar controlling area should use the identical operating chart of accounts and fiscal year.Controlling space is a four digit alphanumeric field.

Company code is the smallest organizational unit the place an entire balanced set of books is produced.Group firm is the legal unit for consolidated reporting. One or more firm codes might be mapped to a group company.Business areas provide steadiness sheet reporting for business segments. They'll cross company codes.Controlling areas capture costs and revenues for internal managerial reporting.Working concerns present the structure to research market efficiency on the premise of user defined criteria.

Multiple Assignment

By assigning a number of company codes to a controlling space, you'll give you the chance to perform cross-company-code value accounting. You can make allocations in CO that discuss with more than one company code.In cross-company-code accounting, you assign a currency, a chart of accounts, and a fiscal year variant to the controlling area.In cross-firm-code value accounting, the controlling space and firm codes could have different currencies. You may define the controlling area foreign money to be the same as one of the company code currencies, or it might be completely different from the forex of any company code assigned to it. Chances are you'll make essentially the most of three currencies in CO:
  1. Controlling area foreign money
  2. Company code foreign money OR object forex
In cross-company-code cost accounting, the thing foreign money defaults from the company code foreign money, and cannot be modified. If there is solely one company code assigned to the controlling area, then the thing foreign money is freely assignable for every controlling object (such as cost center).

Transaction Foreign money

The transaction foreign money is the foreign money in which a document is posted to CO. Multiple firm codes from totally different nations can still be linked to a single controlling space, even when a number of the corporations are required to produce nation-specific external reports. All firms within the controlling space have to make use of the identical operating accounts, but these accounts may be linked to country-particular accounts via the alternative account quantity subject on the account grasp record.The fiscal yr variants assigned to the controlling space and assigned firm codes can differ only within the number of particular periods.

Distributed Channels

The structure in sales and distribution is represented within the system with the assistance of Gross sales Organizations. Each sales organization represents a promoting unit in the authorized sense.In configuration, a sales group is allocated to a company code. This establishes a link between the SD and FI systems. Since a gross sales organization belongs to only one company code all monetary transactions for this gross sales organization are posted to the linked company code.A couple of gross sales organization might be linked to the identical company code.

Organizational Units

The Controlling Space is the basic organizational unit in Controlling. A controlling space represents a closed system for price accounting purposes. Price allocations can solely be carried out inside a controlling area. They cannot contain objects in several controlling areas. Several firm codes could additionally be assigned to one controlling space, which gives the power to perform cross company-code controlling.The controlling space and its assigned firm codes should always use the same working chart of accounts and must have the same fiscal 12 months (only the number of particular durations could be different).The plant represents a production facility. It is an important organizational unit within the SAP R/3 Supplies Management and Production Planning application components. Plants are assigned to firm codes when organizational buildings are defined.The buying organization is accountable for the entire processing of buying actions (akin to requests for quotations and buy orders).A buying organization will be assigned to at the least one firm code, a number of company codes, or can exist without being assigned to an organization code (since each plant must be assigned to an organization code, the latter might be decided through the plant at the time of each procurement transaction to offer the tie for legal reporting).The buying group maintains info related to distributors and pricing to assist the best and value effective acquisition of goods in SAP Financial Company Organization.

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