The organizational structure in SAP FICO (Financial Accounting and Controlling) refers how financial and accounting processes are organized within a company using the SAP ERP (Enterprise Resource Planning) system. SAP FICO is a module within the SAP ERP system that deals with financial management and cost controlling. The organizational structure in SAP FICO is designed to align with the business needs of the company, enabling efficient financial management, reporting, and analysis.
The following are the key organizational levels for Human Resources
- Client
- Company Code
- Controlling Area
- Chart of accounts
- Cost Centers
- Profit Centers
- Business Areas
- Function Areas
Client
The client is the highest level in the SAP Organisation Structure. Client will have individual set of master data and table sets. The data maintained at client level will be applicable for all organizational levels.
Company Code
- Company code is the smallest unit under a client.
- Individual Financial accounting unit
- Individual P & L, Balance Sheet
Controlling Area
- Controlling area is an organizational unit with in SAP under CO Module.
- Responsible for Cost accounting and Internal reporting
- Controlling area can map to one or more company codes and Allowing for cross company code cost analysis
Chart of Accounts (COA)
- The Chart of accounts defines the structure of the general ledger accounts used for financial accounting.
- COA Ensures the consistent recording and reporting of financial transactions.
Cost Center
- Cost center is responsible for a specific area within the organisation where costs can be collected and controlled.
- Cost centers are used in cost accounting for tracking expenses.
Profit Center
- Proft centers are used to analyze the profitability of different segments of the business.
- Profit Centers can be used to track revenues and costs for specific product lines of the business unit/ plants/ regions.
Business Area (BA)
- Business Areas are used in the organization’s financial statements.
- BA’s can be used for internal or external reporting purposes.
- BA’s allow for segmentation of Financial data based on specific criteria.
Functional Area (FA)
- Functional Areas are used in cost accounting to classify costs based on functions such as Production, Sales, Marketing or Administration.