Understanding SAP Enterprise Structure in SAP FI
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The document describes the company code and organizational structure of John Woolworths supermarket chain. It discusses that John Woolworths has four companies located in the US and Canada, and four business areas. It also provides steps to define the company code, company, business area, and segment in SAP using transaction codes.
Understanding SAP Enterprise Structure in SAP FI
- 1. SAP Financials Training Program Author: Jignashu V. Bodawala Version: 1.0 / 2011
- 2. About John Woolworths Supermarket Chain: John Woolworths , a global retailer, operates its stores in USA & Canada. John Woolworths has 4 companies: John Woolworths, Inc. is the parent company responsible for Corporate functions of John Woolworths. John Woolworths.com USA Inc. is the American Online Retailer of John Woolworths, Inc. John Woolworths USA Stores Inc. is the American subsidiary of John Woolworths, Inc. which operates stores under the name of John Woolworths John Woolworths Canada Limited is the Canadian Subsidiary of John Woolworths, Inc. John Woolworths, Inc., John Woolworths.com USA Inc. and John Woolworths USA Stores Inc. are located at 100 Woolworths Dr, Schaumburg, IL 60173. John Woolworths Canada Limited is located at 100 Woolworths, Toronto, ON M5V 3G1. About John Woolworths Business: John Woolworths has four business areas which sells its own brands of same name and other retail brands: Woolworths Fresh – Packaged Food, Fruit, Vegetable, Dairy Product, Ingredient & Beverage, etc. Woolworths Value – Cosmetics, Beauty Product, OTC Drug, etc. Woolworths Home – Kitchen, Bed, Bath, Auto, Electronics, Cleaning Supply, Home Goods, etc. Woolworths Essentials – Apparel About John Woolworths Operations: Company divides its operations in three segments – “Supermarket - Stores US”, “Supermarket - Stores International” and “Supermarket – Online US”.
- 3. Definition Company Code is an obligatory smallest organizational unit for which a self- contained set of accounts can be created ,external accounting can be done such as transactional and ledger postings and the financial statements such as balance sheet and the profit and loss statement can be drawn for external reporting. Company code is represented by a four- character alpha-numeric key Use It’s central organizational unit for financial accounting in SAP for which business transactions relevant for accounting are created, saved and evaluated at Company Code Level. Do not use “0001” key as Company Code because it’s used by SAP System to generate template Company Code with country settings. Consulting CornerCompany Code Define naming convention for company codes with long term vision or follow naming convention established. Obtain list of legal entities in project scope and their address data. Create company code(s) in SAP for each legal entity. Expert Opinion
- 4. Method 1: Create Company Code w/o Global Parameters from Reference Company Code IMG Enterprise Structure Definition Financial Accounting Edit, Copy, Delete, Check Company Code Choose “Edit Company Code Data” by selecting it and then clicking on choose(Figure 1.1). You will see Change View “Company Code”: Overview Screen. Click on “New Entries” to create without reference(Figure 1.2). Alternately, you can select a Company Code (Figure 1.3) and Click on “Copy As” icon (Figure 1.4) Figure 1.1 Figure 1.2 Figure 1.3 Figure 1.4
- 5. Upon on clicking “New Entries” as shown in Figure 1.2, screen for adding new entries is displayed (Figure 2.1). Enter values for Company Code, Company Name, City, Country, Currency and Language and Click “Save”. Screen for adding address data is shown (Figure 2.2). Enter Name, Search Term, Address, Communication Data. Save Data. Figure 2.1 Figure 2.2 1. T-Code OX02 can be used to directly go to Change View “Company Code”: Overview Screen (Figure 1.2). 2. Data in Figure 2.1 is stored in T001 table. 3. Data in Figure 2.2 is stored in ADRC table. Extra Shots
- 6. Method 2: Create Company Code with Global Parameters from Reference Company Code IMG Enterprise Structure Definition Financial Accounting Edit, Copy, Delete, Check Company Code Choose “Copy, delete, check company code” by selecting it and then clicking on choose(Figure 3.1). You will see Organizational object Company Code Screen. Click on “Copy Organizational Object” icon (Figure 3.2). In the copy screen enter from company code and target company code to copy (Figure 3.3) Figure 3.1 Figure 3.2 Figure 3.3 1. T-Code EC01 can be used to directly go to Organizational object company code screen (Figure 3.2). Extra Shots
- 7. Company Code Company Name City Country Currency Language JW01 John Woolworths, Inc. Schaumburg US USD EN JW02 John Woolworths.com USA Inc. Schaumburg US USD EN JW03 John Woolworths USA Stores Inc. Schaumburg US USD EN JW04 John Woolworths Canada Limited Toronto CA CAD EN USA Currency: USD Co Code JW01 Co Code JW02 Co Code JW03 Canada Currency: CAD Co Code JW04 Configuration Parameters John Woolworths Company Code Structure
- 8. Definition Company is an optional organizational unit of external accounting that corresponds to a group of company and for which financial statements can be generated. Company can have one or more company codes. Use Company forms a basis for financial consolidation. All company codes must use same in a company must use same Chart of Account & Fiscal Year, only currencies can be different. Company generally represents a commercial law of country. 1. If only one company is required, use preset company ID G00000 to reduce configuration. 2. If several clients are used, the non- operational group-internal business partner companies must be maintained in each client to allow account assignment of group internal trading partner. Consulting CornerCompany Decide the need for a company and define company. Assign company codes to company. Consider group reporting and Financial Consolidation (FI-LC or EC-CS) requirements. Expert Opinion
- 9. IMG Enterprise Structure Definition Financial Accounting Define Company You will see Change View “Internal trading partners”: Overview Screen. Click on “New Entries” to create company (Figure 4.1). Details screen is displayed. (Figure 4.2). Enter Company ID, Company Name, Street, Postal Code, City, Country, Language, Currency, etc. and Save the record. Figure 4.1 1. T-Code OX15 can be used to directly go to Change View “Internal Trading Partner”: Overview Screen (Figure 4.1). 2. Data in Figure 4.2 is stored in T880 table. Extra Shots Figure 4.2
- 10. IMG Enterprise Structure Assignment Financial Accounting Assign company code to company You will see Change View “Assign Company Code Company”: Overview Screen (Figure 5.1). Enter Company ID for each Company code (Figure 5.1). Alternately, you can use dropdown to look for company ID (Figure 5.1) and the list will be displayed (Figure 5.2). 1. T-Code OX16 can be used for direct access o screen in Figure 5.1 . 2. Data in Figure 5.1 is stored in T001 table. Extra Shots Figure 5.1 Figure 5.2
- 11. Company Company Name Company Name 2 Street City Country Currency Language JW0001 John Woolworths Group John Woolworths, Inc. 100 Woolworths Dr Schaumburg US USD EN Company ID JW0001 (USD) Co Code JW01 (USD) Co Code JW02 (USD) Co Code JW03 (USD) Co Code JW04 (CAD) Configuration Parameters John Woolworths Company
- 12. Definition Business area is an optional organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Business areas can be used across company codes. Business areas are represented by a four- character alpha-numeric key. Use It can be used in segment reporting over and above company codes such as to enable financial statements for product lines, branches, brands, etc. for internal reporting purpose. It does not have any external impact. All financial transactions can be assigned to business area. Consider Cost Centers & FI Substitution Rules for populating business areas. Consulting CornerBusiness Area Define naming convention for business areas with long term vision or follow naming convention established. Consider all legal entities and other structures such as segments, brands, regions, profit centers, etc. Create business areas in SAP Expert Opinion
- 13. IMG Enterprise Structure Definition Financial Accounting Define Business Area You will see Change View “Business Areas”: Overview Screen. Click on “New Entries” to add business areas (Figure 6.1). Details screen is displayed. (Figure 6.2). Enter business area(s) and descriptions. Save the records. Figure 6.1 1. T-Code OX03 can be used to directly go to screen in Figure 6.1 2. Data in Figure 6.2 is stored in TGSB table. Extra Shots Figure 6.2 Company JW0001 Co Code JW01 Co Code JW02 Co Code JW03 Co Code JW04 Business Area JW01 Business Area JW02 Business Area JW04 Business Area JW03 John Woolworths Company with B Area
- 14. Definition Division of a company for which financial statements can be created for external reporting as per accounting principles set by IFRS and US GAAP. Business areas can be used across company codes. Business areas are represented by a four- character alpha-numeric key. Use US GAAP and IFRS requires a virtually complete balance sheet at the segment level for segment reporting (essentially everything apart from stockholders' equity). It’s a subarea of a company which generates expenses and revenues, with an operating result that is regularly used by management for profit assessment and resource allocation purposes. 1. Consider Profit Center Master Data and Business Add-ins for populating segments. 2. Segment Dimensions can be used to represent segment levels. Consulting CornerSegment Define naming convention for business segments and identify the need for segments. Small companies may not have segments but very large companies can have segment hierarchies (levels). Identify operating segments and segment reporting needs. Create segments in SAP Expert Opinion
- 15. IMG Enterprise Structure Definition Financial Accounting Define Segment You will see Change View “Segments for Segment Reporting”: Overview Screen. Click on “New Entries” to add business areas (Figure 7.1). Details screen is displayed. (Figure 7.2). Enter Segments and descriptions. Save the records. 1. Data in Figure 7.2 is stored in FAGL_SEGM & FAGL_SEGMT table. Extra Shots Figure 7.2 Company JW0001 Business Area JW01 Business Area JW02 Business Area JW04 Business Area JW03 John Woolworths Company Segments Segment WLSUPSTUS Co Code JW01 (USD) Co Code JW03 (USD) Segment WLSUPONUS Co Code JW02 (USD) Segment WLSUPSTINT Co Code JW04 (CAD) Figure 7.1
- 16. Provide definition, use, consulting activities & Configuration, tips & tricks for - Company Code Company Business Area Segments