FI ORGANIZATIONAL STRUCTURE

FI Org Structure:

Client

     |

Operating Concern

               |

Controlling Area 1                  Controlling Area 2

               |

Co. Code 1       Co. Code 2

            |

Business area1    Business area2         Business area3

Client: A customer who agrees to implement SAP system as the ERP solution for the organization.

Company: Company is an organizations unit which is generally used in the legal consolidation to roll up financial statements of several company codes. A company can include one or more company codes. If we are going to consolidation, we need to enter the 6 character alphanumeric company identifier that related to this company code.

Functional Area: Org unit in financial accounting that classifies the expenses of an org by function such as Admin, S& D , Marketing, Production, R&D.

Business Area: Business areas in SAP are used to differentiate transactions originating from different points/lines/locations in business.

Consolidation Business Area: A consolidation business area in an accounting org unit that represents a central business segment within business org and that has a balance sheet, which can be included in business are consolidation.

Functional Management Area: The financial management area is an org unit within accounting, which structures the business org from perspectives of cash budget management and funds management.

Fiscal Year: Usually a period of 12 months for which a company regularly creates financial statements and check inventories.( a fiscal year can have a max of 12 posting periods and 4 special periods).

            Year independent: Same no. and dates for the periods every year.

            Year dependent: start and end Periods vary from year to year.