ORGANISATIONAL UNITS IN FI

Compan Business
y Code Area 1
Compan
y Code Function
Compan al Area 1
y
Controlli Business
ng Area Compan Area 1
Client
y Code
FM Area Function
al Area 1
CLIENT

 Client is defined as a self-contained commercial, organizational, and technical unit

within an SAP System this means that all business data within a client is protected
from other clients
 In other terms Client is an independent unit where we can store
 Configuration Data – Example Creating Company, Company Code, Fiscal Year Variant, Chart of
Accounts and so on
 Master Data – Example Creating GL Accounts, Creation of Customer/Vendor Account and so on
 Transaction Data – Example Posting GL accounts, Goods Receipts, and Vendor invoices
CLIENT
 Any configurations made at client level are valid for all company codes and for all
other organizational structures within that client.
Example Business Area
 Other Points for Client
 Client key is a 3 digit identifier for example 800, 810, 900
 Path: SAP Easy Access  Tools  Administration  Administration  Client Administration 
Client Maintenance
 T-Code: SCC4 – Client Administration
 Database Table: T000
 Compan Business
y Code Area 1
Compan
y Code Function
Compan al Area 1
y
Controlli Business
ng Area Compan Area 1
Client
y Code
FM Area Function
al Area 1
COMPANY

 Company is the highest organisational unit in FI module

 Company is the organizational unit used in the legal consolidation module to
consolidate financial statements of several company codes which are assigned to it.
 It is also called as a Trading partner by which we can identify the inter company
transactions
 Other Points for Company
 Creating a Company is a optional
 Company ID can be a 6 character alphanumeric key (for example TATA01, 100000 or TCSGRP).
However it is industries best practises to give only numeric characters instead of alphanumeric
COMPANY
 Other Points for Company
 Mandatory Fields in Company – Country
 Path: SPRO  SAP Reference IMG  Enterprise Structure  Definitions  Financial
Accounting  Define Company
 Database Table: V_T880
 T-Code: OX15
 Compan Business
y Code Area 1
Compan
y Code Function
Compan al Area 1
y
Controlli Business
ng Area Compan Area 1
Client
y Code
FM Area Function
al Area 1
COMPANY CODE
 Company Code is a smallest organisational unit for which a complete own set of
accounts can be drawn up for the purpose of external reporting
 It’s the most important part of the organisational structure as assigned to most of the
other modules for integration
 At company code level we can record all the financial transactions, book keeping,
financial statements like balance sheet and profit & loss account
 While creating a company code it is a best practise to create a company code by
copying from an existing country specific company code
COMPANY CODE
 Other Points for Company Code
 Creating a Company Code is mandatory
 Company Code ID can be a 4 character alphanumeric key (for example 1000, TCS0, TATA). However it
is industries best practises to give only numeric characters instead of alphanumeric
 Mandatory Fields in Company Code – Currency
 Path: SPRO  IMG  Enterprise Structure  Definition  Financial Accounting  Edit Copy,
Delete, Check company code
 Database Table: T001
 T-Code: OX02 – Edit Company Code
EC01 – Copy, Delete, Check Company Code
OX16 – Assign Company Code to Company
 Compan Business
y Code Area 1
Compan
y Code Function
Compan al Area 1
y
Controlli Business
ng Area Compan Area 1
Client
y Code
FM Area Function
al Area 1
BUSINESS AREA
 Business areas are used in external segment reporting (over and above company
codes) based on the significant areas of operation (for example, product lines) or a
geographical areas (for example South, North) of a business enterprise
 As per AS 17 & Ind AS 108 Segment Reporting establish principles for reporting
financial information, about the different types of products and services an enterprise
produces and the different geographical areas in which it operates
 If the risks and returns of an enterprise are affected predominantly by differences in
the products and services it produces, its primary format for reporting segment
information should be business segments, with secondary information reported
geographically and vice versa
BUSINESS AREA (BA)
 Business Area will not be assigned to any company code as it is available at client
level
 However we can restrict a BA for a company code through validation
 Other Points for Business Area
 Creating a Business Area is optional
 Business Area ID can be a 4 character alphanumeric key example HYDE, SECU, FMCG and so on
 Path: SPRO  IMG  Enterprise Structure  Definition  Define Business Area
 Database Table: TGSB
 T-Code: OX03 – Define Business Area
 Compan Business
y Code Area 1
Compan
y Code Function
Compan al Area 1
y
Controlli Business
ng Area Compan Area 1
Client
y Code
FM Area Function
al Area 1
FUNCTIONAL AREA
 Functional areas in an organization are used to meet the cost of sales accounting
requirements because they enable us to classify the expenses by functions
 Examples of Functional Area
 Manufacturing
 Administrative
 Sales Expenses
 R&D Expenses
 Functional areas are defined at client level
 We can assign the functional area to cost centre, production order, sales order and service
order
FUNCTIONAL AREA
 Other Points for Functional Area
 Creating a Functional Area is optional
 Functional Area ID can be a 16 character alphanumeric key
 Path: SPRO  IMG  Enterprise Structure  Definition  Financial Accounting  Define
functional Area
 Database Table: FM_Function
 T-Code: TFKB
 Compan Business
y Code Area 1
Compan
y Code Function
Compan al Area 1
y
Controlli Business
ng Area Compan Area 1
Client
y Code
FM Area Function
al Area 1
FM AREA
 Financial management area is an organizational unit within accounting which structures the
business organization from the perspective of Cash Budget Management and Funds
Management
 FM Area are defined at client level
 Other Points for FM Area
 Creating a FM Area is optional
 FM Area ID can be a 4 character alphanumeric key
 Path: SPRO  IMG  Enterprise Structure  Definition  Financial Accounting  Maintain FM Area
 Database Table: V_FM01_A
 T-Code: OF15