SAP S4 HANA FICO Enterprise Structure CLASS 04

Main Ideas and Concepts (Enterprise Structure in SAP S/4HANA FICO)

Enterprise Structure / Organization Structure

• In SAP, Enterprise Structure (also called Organization Structure) models how an organization is represented for accounting and legal reporting.
• The speaker emphasizes using SAP terminology inside SAP (avoid non-SAP terms when configuring or documenting).

Hierarchy Mapping: Non-SAP vs SAP Terminology

• Group of company (non-SAP) → Company (SAP)
• Individual companies (non-SAP) → Company code (SAP)
• Branches (non-SAP) → Business area (SAP)
• Departments (non-SAP) → Functional area (SAP)
• Segments (appears in both contexts)
  • Segments are used to classify portions of the business.
  • Example mentioned for Steel and Cement segments.

Typical Additional Elements Mentioned (Not Deeply Configured Yet)

• Controlling area
• Consolidation business area
• FM area (Funds Management area)
• Credits / credit controlling area (wording unclear, but controlling-related concepts are referenced)

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Examples Used to Explain the Hierarchy

Tata Group Example

• Tata group (group of company)
  • Tata Steel / Tata Motors / Tata Cement (individual companies)

Reliance Group Example

• Reliance group
  • Several individual companies (e.g., communications, petroleum, insurance, etc.)

RM Group Example (Used for SAP Creation Targets)

• RM group of company
  • RM Steels Private Limited
  • RM Cement Limited These are used to demonstrate how SAP objects map to real organizational units.

Segments Example

• For a cement-related business, segments such as:
  • Steel segment / Rod segment (example)
  • Cement segment(s) (example)

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Methodology / Step-by-Step Configuration Flow (SAP)

1) Understand the SAP Path and T-code for Company (Enterprise Structure)

Goal: Configure Company (SAP object) for “RM group of company”

Path (as spoken):

• SPRO
• SAP Reference IMG
• Enterprise Structure
• Definition
• Financial Accounting
• Define company

T-code mentioned:

• OX15 (noted as the last four digits in the T-code)

Guidance:

• Before creating, the trainer suggests reading the definition/document for “company” (purpose and meaning).

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2) Create a Company (SAP “Company” = Highest Hierarchy Object)

• Object: Company
• Trainer guidance to note/document:
  • Company is an organizational unit in accounting
  • Helps meet central legal requirements for country/region

Creation fields (examples described):

• Company name: e.g., “RM group of company”
• Company ID/code: up to 6 digits, numeric or alphanumeric
  • Must not be duplicated
• Address: country/region, city, postal code, etc.
• Currency:
  • The currency selected during company creation becomes the Global Currency for that company/group

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3) Change Company Address Later (After Creation)

Approach:

• Use the same path/T-code
• Locate the company using Company ID
• Update address fields and save

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4) Create Company Codes (SAP object = Smallest Legal Entity)

Goal: Configure Company Codes under the Company

Meaning given:

• Company code = smallest legal entity
• For each company code, SAP generates financial statements (example: P&L and Balance Sheet)
• Accounting postings can be made at company code level (GL, vendor, customer, assets, bank, etc.)

T-code / path reference for company code creation:

• The trainer points to the relevant activity/document from the same SPRO path and then uses Edit Company Code
• T-code stated in subtitles as OX02

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5) Create a Company Code (RM Steels Private Limited & RM Cement Limited)

Fields described:

• Company code ID: up to 4 characters (numeric or alphanumeric)
• Name: e.g., RM Steels Private Limited
• Location/address: street/house/post box/postal code
• Currency:
  • Currency set during company code creation becomes the Local Currency for that company code
• Language: English mentioned

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6) Local vs Global Currency Logic (As Taught)

• Company (group/head office perspective) currency → Global Currency
• Example logic:
  • RM group headquartered in USA → USD as global currency
  • India-based company → INR as local currency
  • Singapore-based company → SGD as local currency
• The subtitles also mention that in their example it can also all be INR, depending on the scenario.

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7) Change Company Code Address Later

Approach:

• Return to the same configuration screen
• Enter company code (e.g., “RM1”, “RM12”, etc.)
• Update address/contact fields
• Save

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Training / Session Workflow Described

• The trainer frames the course as step-by-step, not all in a single day:
  1. Create Enterprise structure objects (Company, Company code, etc.)
  2. Map/create master data
  3. Post accounting entries
  4. Generate reports
• Mentions sharing practice material on WhatsApp and continuing the rest in the next class.

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Speakers / Sources Featured (From Subtitles)

• Primary speaker / trainer: Unnamed SAP/FICO instructor (referred to as “sir” and “maduma/ma’am” at times, but no clear name stated)
• Participants: Several students referenced (e.g., “Sam,” “Punam,” “Madavi/Maduma,” “Dina,” “Lucky,” etc.), but they are not clearly identified as distinct speakers with consistent roles