Enterprise structure

Enterprise structure is the structure that represents an enterprise in SAP ERP system. It is sub
divided into various organizational units which for legal reason or business related reason
Financial accounting enterprise structure ( FI Enterprise Structure )

1. Company
A company is an organizational unit in Accounting which represents a business organization
according to the requirements of commercial law in a particular country.
In the SAP system, consolidation functions in financial accounting are based on companies. A
company can have one or more company codes.
2. Company code
The company code is an organizational unit used in accounting. It is used to structure the
business organization from a financial accounting perspective.
3. Segment
Division of a company for which you can create financial statements for external reporting.

Sales and distribution enterprise structure ( SD Enterprise structure )

1. Sales organization
The sales organization is an organizational unit within logistics that structures the company
according to its sales requirements.
A sales organization is responsible for the sale and distribution of goods and services.
2. Division
It can be defined as organizational entity which is responsible for handling, selling a group of
materials in organization.
It is used to differentiate different product selling in a sales area
3. Distribution channel
Distribution channel represents the channel through which salable materials or services reach
customers. Examples of distribution channel is wholesale, retails, direct sales
4. Sales area
A sales area is specific combination of sales organization, distribution channel and division.

Materials management enterprise structure ( MM Enterprise Structure )

1. Plant
Plant is organization unit within the company. A plant will produce goods and make goods
available for the company.
2. Storage location
Storage location is an organizational unit which actually differentiates different material stocks
in a plant. Storage location is a place where stock is kept physically.
3. Purchase organization
Purchasing organization is an organizational unit under company, which is responsible for
procurement activities according to requirements
Chart of Accounts
This is a list of all G/L accounts used by one or several company codes.

Chart of accounts have 3 different types

Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your
company code during daily activities. Financial Accounting and Controlling both use this chart of
accounts.
You have to assign an operating chart of accounts to a company code .
Group chart of accounts
The group chart of accounts contains the G/L accounts that are used by the entire corporate
group. This allows the company to provide reports for the entire corporate group.
The assigning of an corporate group chart of accounts to a company code is optional.
Country-specific chart of accounts
The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal
requirements. This allows you to provide statements for the country's legal requirements.
The assigning of an country-specific chart of accounts to a company code is optional.

Account Groups
The account group will use grouping on similar nature of GL Accounts into one group
Ex- All Expense GL Accounts in to one Account group and all revenue accounts into one group
Etc…

Retained Earnings account

Retained Earnings Account. Retained Earnings Account is used to carry forward the balance
from one fiscal year to the next fiscal year

Fiscal Year Variant

Fiscal year variant contains the number of posting periods in the fiscal year and the number of
special periods
Shortened fiscal year
A fiscal year contains less than 12 months is called shortened fiscal year
Posting period variant
Posting period variant is used to control which accounting period to be open and which
accounting period to be closed
Document types
Document types allows to differentiate between the business transactions to be posted.
Document types tells you what sort of business transactions it is.
Number ranges
Number ranges is responsible for generate the document number and it is assigned to
document types.
Tolerance Groups
The authorization given to the employees for the maximam amount permitted per document.