root organization / company code

[Former Member]

Hi All,

I have a very basic question.

what is the difference between a root organization and a company code created in SRM.

Please do not give bookish answer.

Lets say in MM we have a parent company and then 2 subsidery created as company code now if I have to replicate this in SRM .....which one will be root org.

[Former Member]

Hi

Apart from Bookish definition, One shall consider financial aspects. See, SRM never being frontend financial reporting system, SRM has freedom to align its backend org structure. If there is single backend system connectivity, Then Root organisation can be Company and Company Code can be defined as departments below it. And if multiple connected back ends, then root org in SRM can be a symbolic to address all such systems and its level 1 departments can be addressed to company or co code of individual system and then respective levels for further hierarchy in alignment to ECC org stru.

Cheers.

[Former Member]

Also how do you create a department in the SRM

I mean we get only 3 option in the config company/porg/pgrp but which setting will re present department