SAP FI has its own organizational structure. SAP FI organizational structure consists of client, chart of depreciation, chart of accounts, credit control area, business area, and company code. Some of the elements of Financial Accounting (FI) organizational structure are shared with other modules of SAP ERP.
Belo is a diagram illustrating SAP FI organizational structure:
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Client means highest level of SAP Organizational Structure maintained under single SAP environment of the SAP Client. In SAP Landscape client is an independent information and data. Client means a location in an environment where configuration maintained, master data created and transaction data posts. An environment can have multiple clients for specific purposes like a golden client only for configurations in development environment (Development, Configuration, Testing, Production, etc).
SAP introduced client concept to avoid separate physical system for each customer. Client concept also helps for individual customers to create different clients in one environment. We have different environments, in each environment we can have multiple clients for various activities. There is no obligation to have multiple clients in an environment.
SAP standard provides 3 different clients:
- Client 000 is a master client, it comes by default through SAP ERP software installation.
- Client 001 is a copy of client 000 with Test Company. This client considered as a reference (copy) to create new client.
- Client 066 is called early watch client, it is a diagnosis service for solution monitoring of SAP and NON SAP systems in SAP solution manager.
SAP landscape: Development –> Quality –> Production
- Development system has basically 2 clients (may differ as per the system integrations, segregation of ABAP development, Configuration & Development testing)
- Quality system may have multiple clients (may differ as per the system integrations, segregation of ABAP development, Configuration & Development testing)
- Production system
- Customer may have pre-production client to check the direct impact on real time data.
Production system has one client where we book business transaction of day-to-day activities.
Chart of Depeciation
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Chart of depreciation are used in order to manage various legal requirements for the depreciation and valuation of assets. SAP provided standard chart of depreciation as per the legal requirement of countries. We can create new chart of depreciation by copying the existing chart of depreciation only. It is not possible to create new without copying the existing chart of depreciation.
We can assign one chart of depreciation to many company codes belongs to same country and same functional currency. In SAP new G/L we can have two additional currencies (transaction code OB22). in Asset Accounting we need to assign these currencies to relevant depreciation areas. In classic G/L we have only one currency.
Chart of Accounts
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Chart of accounts consists a list of G/L accounts used by an organization to book the business transactions and day to day activities. It is possible to specify whether cost elements to be create automatically or manual while creating chart of accounts. In SAP configuration like G/L account assignment happened at chart of accounts only. G/L account to be create at chart of accounts level then it is possible to extend at company code level.
Types of Chart of Accounts
We have three types of chart of accounts available in SAP: Operating chart of accounts, Group chart of accounts and country chart of accounts.
Operating Chart of Accounts
GL accounts created under operating chart of accounts are used to book day to day transactions of business. Cost element category maintained for operating chart of accounts. Assignment of operational chart of accounts is obligatory.
Group Chart of Accounts
GL accounts under group chart of accounts are meant for reporting at entire corporate group purpose. In other words we can say reporting of all company codes data. No direct posting allowed to group chart of accounts and the assignment is elective.
Country Chart of Accounts
GL accounts created under country chart of accounts are as per the country legal requirement to provide reporting at per legal requirement of country. Assignment is elective to a company code.
Credit Control Area
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Credit control area used to check credit limit for customers. We can assign one credit control areas to one or more company codes.
Credit control area is used for credit management in the applications components for Sales and Distribution and Accounts receivable. Credit management be a centralized or decentralized. If it centralized then all company codes can use one credit control area, in case of decentralized each company code should has individual credit control area.
Credit control area to be assigned to company code and in the customer master data also.
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Business areas are used to distinguish business transactions of an organization at unit/branch level. For example: A construction company has one company code but it has various projects so each project will be defined as business area.
While booking transactions business area to specify so it is possible to derive reports based on business area. It is not possible to input business area for all the transactions hence business area concept is not much in use.
Business area not assigned to any company code so if an organization has multiple company codes then all can use the same business area. It is also possible to maintain business area as an element in master data like cost center, WBS element, internal order, etc.
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One of the most important elements of SAP FI organizational structure is a company code. It is a legal independent entity for which general ledger master data extended or created to carry out day to day activities of the business transactions.