Organizational Structure


In the SAP System, the company’s structure is defined by the Enterprise Structure and the Personnel Structure. When used together, these structures defined the legal entities of the company, work locations for the company, and the Company’s various employee groups.
Because the enterprise and personnel structures help the company differentiates between the various type of employee and work locations, the structures values are used extensively in payroll, time and benefit processing rules.

The enterprise and personnel structures are also used extensively by the financial components of SAP. For instance, the structure values are used in rules to appropriately posts payroll expenses to the correct GL accounts. Additionally, the tracking of recurring base budgets by staff group relies heavily on Enterprise and Personnel structure values.
Enterprise and Personnel structures are stored on positions. When positions are created by the HR compensation Analyst, the appropriate structure values will be selected and stored for the position.

As employees are assigned to positions, the employee will inherit the structure values stored on the position. If the values are not appropriate for the assignment, the values may be changed on the employee assignment screen (Infotype 0001, Organizational Assignment). Especially with concurrent employment, the enterprise and personnel structure values will require carefull over sight.


The enterprise structure for Personnel Administration is made up of the following elements.
Client : an independent legal and organizational unit of the system
Company Code : An independent company with its own accounting unit;a company that draws its own balance sheet
Personnel Area : A specific entity for Personnel Administration; a sub division of the company code
Personnel SubArea : A sub division of the personnel Area

Following is a more detailed of each enterprise structure value.

Company Code
The company code is the highest level of the enterprise structure within the client. It represents an independent company. The company code is established in the Finance module of SAP.

The IMG Path:
IMG-> Enterprise Structure -> Definition -> Financial Accounting -> Define Company
IMG-> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete and

Check Company Code
And Related above definition altogether:
IMG-> Enterprise Structure -> Assignment -> Assign Company Code to Company

Country groupings are assigned to the company code. The country groupings control master data entry and the setting up and processing of wage types and pay scale groups in Payroll on a country-specific basis. The country grouping must be unique within a company code.

Personnel Area
The personnel Area represent a subdivision of the company code.
The personnel Area can be used to perform system evaluations of data or to perform authorization checks. It is also can be used in report selection parameter in delimiting the report output.

The IMG Path:
IMG-> Enterprise Structure -> Human Resources -> Definition -> Pesonnel Areas
Then to link personnel Area to related Company Code
IMG-> Enterprise Structure -> Human Resources -> Assignment Personnel Area to Company Code

By relate the personnel Area and Company Code, in case FI module has Go-Live, the the configuration will be directly linked to the Controlling Area that is used by Finance Side. Thus the payroll live posting into FI has been set

In case, the FI module has not GO-Live yet, then this Company, Company Code also have to be set anyway..

Personnel SubAreas
The personnel subarea represents a subdivision of the personnel area. For instance, within
each personnel area, the company has a variety of employees. Some are eligible for pay while others are not. Some are eligible for benefits while others are not.

For Instance, company A has 2 separate location of plant. One is for their head office and the other is for manufacturing plant. But both of their financing transaction m would be reconciled into the same Accounting balance sheet, that is to company A. Each of plant will issue their Tax reporting to separate Tax office addresses.

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