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Enterprise Structure

The document outlines the structure of an enterprise in SAP, detailing the definitions and roles of Client, Company Code, Company, Business Area, and the assignment of Company Code to Company. It explains that a Client is the highest organizational unit, while Company Code is essential for financial reporting. Additionally, it describes the optional nature of defining a Company and Business Area, along with the respective transaction codes for each element in the SAP system.

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8 views7 pages

Enterprise Structure

The document outlines the structure of an enterprise in SAP, detailing the definitions and roles of Client, Company Code, Company, Business Area, and the assignment of Company Code to Company. It explains that a Client is the highest organizational unit, while Company Code is essential for financial reporting. Additionally, it describes the optional nature of defining a Company and Business Area, along with the respective transaction codes for each element in the SAP system.

Uploaded by

பிரதீப் வாசுதேவன்
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ENTERPRISE STRUCTURE

1) What is Client?
Client is the highest organization unit in SAP. It is a three digit numeric code which is use to
store the master data and the tables. SAP delivers 3 standard clients. One as a development
client, one as quality (testing) and one as production (used by end-users). Transactions
passed at the client level will be applicable to all the company codes which are there under
that particular client number. Under a particular client there can be one company code or
multiple company codes. T-code to define client in an SAP system is SCC4.

Execute the transaction code SCC4. Table T000

These are the several clients which are already defined. If we double click on any of the
clients then we will be able to see the settings at the client level.
Generally, client is defined by the BASIS Consultant as per the requirement.

As shown in the above screenshot if currency is set as USD, then by default the currency for
every company code under this client will be USD. However, at company code level currency
can be changed.

2) What is Company Code?


Company code is the most important business organizational unit which is required to be
registered under the Companies Act, 1956. It is mandatory to define company code in SAP so
as to implement the SAP FI module. At company code level, balance sheet and profit and loss
account can be generated for external reporting. T-code to define company code is OX02 and
table is T002.

Execute the code OX02 and define your own company code.
SAVE

3) What is Company?
Company is the smallest unit of business organization for which financial statements like
balance sheet and profit and loss account reports can be generated. It is not
necessary/mandatory to define company in an SAP system. Company is also called as groups
of company codes. Example Tata groups is a company but TATA steel, TATA finance are all
subsidiaries of TATA groups which are called as company codes. T-code to define company is
OX15.
SAVE

4) What is Business Area?


Business area in SAP can be classified product wise or geographical wise depending
upon the requirement of the business organization. It is not necessary to create
business area in SAP system however organization can have multiple business areas
as per their requirement. At business area level financial statement like profit and loss
account and the balance sheet can be generated for the internal reporting. T-code to
define business area in an SAP system is OX03. It is to be noted that if consolidated
business area has been created in an SAP system then it is mandatory to assign
business area to the consolidated business area. Consolidated business area is the
central segment within the business area. T-code to define consolidated business area
in an SAP system is OCC1 and the same is to be assigned to the business area with the
help of the T-code OBB6. Business area is alpha-numerical code and it is created at the
client level.

Table- TGSB
SAVE

5) Assignment of Company code to Company


It is very much mandatory to assign company code to the company so as to create a link
between both the element in the SAP system. T-code to assign company code to company is
OX16.
SAVE.

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