Organisation structure

[Former Member]

Hi,

Can any one explain what is the answer for Organisation structure in FICO as the question raised in interview.

Please explain in detail.

Regards,

Krishna

[Former Member · Accepted solution]

hi,

ur prepare the ponit :

Org. Stru. :

1. Client.

2. Operting concers.

3.Controlling Area.

4. Business Area.

5. other : plant etc.

6. Ratio ( 1:n)

rohit

[Former Member · Accepted solution]

thanks

[Former Member]

Hi,

Following is the Organizational structure in FICO:

Client -> Operating Concern -> Controlling Area -> Financial Area -> Credit Control Area -> Company -> Company Code -> Business Area

Details:

1) Client: A commercially, organizationally, and technically self-contained unit within an SAP System. Clients have their own master records and set of tables. The client is the highest level in the SAP System hierarchy. Specifications that you make, or data that you enter at this level are valid for all company codes and for all other organizational structures. You therefore only need to make these specifications, or enter this data once. This ensures that the data is consistent.

2) Operating Concern: An operating concern represents an organizational unit in your company for which the sales market has a uniform structure. It is the valuation level for Profitability Analysis (CO-PA).

3) Company: The smallest organizational unit for which individual financial statements are created according to the relevant legal requirements. A company can include one or more company codes.

4) Company Code: Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement. The company code is the central organizational unit of external accounting within the SAP System.

5) Business Area: Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Movements in value entered in Financial Accounting are assigned to business areas. Business areas are used in external segment reporting (over and above company codes), based on the significant areas of operation of a company (for example, product lines, branches).

6) Controlling Area: Organizational unit in an organization that represents a closed system used for cost accounting purposes. A controlling area may contain one or more company codes, which can operate in different currencies, if required. The company codes within a controlling area must all use the same operational chart of accounts.

7) Credit Control Area: It helps in administering the credit management functions relating to the customers.

I hope it will help.

If helpful, please assign points.

Regards,

Manju

[Former Member]

Hi Manju,

Thanks for details explanation of Org.Structure.

I have some doubt in this scenario.

what is meaning of "operating concern" .If its possible detailed explanation with examples.

Thanks and Regards,

Subbu.

[Former Member]

Hi Subbu,

The operating concern represents a part of an organization for which the sales market is structured in a uniform manner. By setting off the costs against the revenues, you can calculate an operating profit for individual profitability segments, which are defined by a combination of classifying characteristics (for example, product group, customer group, country, and distribution channel). The market segments of each operating concern are displayed as profitability segments.

let me know if you have any doubts unclear.

Thanks,

Anil

[arvind_pereira]

Group

Operating concern (Company)

Controlling area

company codes

plants and profit centres or segments or division

when operational COA and group COA is different, we have to use Operational COA.

if special periods will impact FI alone, Co document will update controlling area currency itself.

Controlling area is having 1:1 relationship.

When fiscal year variant is different, we can have one controlling area, they should all be in one COA, and periods should be 12.

regards

Arvind Leo Pereira

[Former Member]

Hi,

As per i know this is the organisation structure.

1) Servers

2) Sap Instances

3) Client

4) Operation Concern

5) Controlling area

6) Company Code

7) Plant

in op. concern: we have 1 currency

in controlling area we have one currency

Company code we have one currency

Pl.Note: Chat of Accounts and F.Y var is same then only we can assign controlling area.

With Best Regards,

Satish Kumar.M

[Former Member]

client

V

controlling operating chart of credit contring

Area concern Accounts Area

V

company code

V

Business ARea