Let’s understand concept of enterprise structure with an example.
Example: House (consider functioning of a house)
Guests are chaired in hall. Material is stored in store room. Food is cooked in kitchen. Bath is done is bathroom. Cloths are washed in washing machine kept in dry area. Balcony is to provide fresh air and drying cloths.
Hence a house is composed of below units:
Hall / store room / kitchen / bathroom / dry area / balcony
For effective functioning of a house, all these units need to be put together and interlinked in a specific way. This is an example of house structure. Here structure represents the specific way in which there units are interlinked with each other to make a house function effectively.
Each house may have different arrangement of these units hence each house can have different structure.
Now let’s apply the same concept and understand enterprise structure.
Functioning of an enterprise or organization
Sales department might have multiple sales representative scattered across geography. Purchase department might be divided into multiple groups with responsibility of specific purchase. Purchasing department procures raw material from vendor and store it in storage. Using raw material finished goods are manufactured at manufacturing site. Manufactured finished good are stored at a location for sale. Goods for sale are dispatched from a specific location.
A company might have several affiliates. Each affiliate is independent legal unit hence finance department has to prepare balance sheet and profit & loss statement for each affiliate separately. For balance sheet and profit & loss statement of Group Company, finance department has to consolidate financial data of all affiliates.
Sap is supposed to replicate business and fulfill business requirements.
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To enable effective functioning of enterprise/ organization, above organizational units are interlinked in a specific way. This interlinking of organizational units in a specific way is referred as enterprise structure.
Below picture represents enterprise structure in sap.
SAP ENTERPRISE STRUCTURE
When sap is implemented in an organization, enterprise structure is decided and created as per business requirement.
Below picture depicts how business units are represented as organizational units in sap.
GL ACCOUNTING
- What is SAP FICO ?What business requirement is fulfilled in this module?
- What is enterprise structure in sap fico?
- What is GL account? What is account group? What is operational chart of accounts?
- What is the need of country chart of account or alternate chart of account? How country chart of account helps fulfill a business requirement?
- What is the need for group chart of account? How group chart of account helps in consolidation of financial data?
- What is non leading ledger in sap fico?
- What is company code global settings? What global parameter is assigned to company code?
- What is fiscal year variant? Why fiscal year variant is assigned to company code?
- What is posting period variant? Why posting period variant is assigned to company code?
- What is field status variant? What is field status group?
- What is document type in sap? Explain the purpose of document type?
- Document date vs Posting date vs Entry date vs Translation date. Explain
- What is posting key? what is the use of posting key?
- Document header & line items capture information of business transaction.
- Everything about currency & exchange rate in sap.
- Foreign currency valuation in sap. Explain with example
- Retained earnings account helps in year end balance carry forward. Explain
- What is the significance of tolerance groups in sap?
- What parameters are maintained in GL master and how does it impact in document posting?
ACCOUNTS PAYABLE
- What is meant by accounts payable in sap?
- Understanding procure to pay (PTP) cycle and accounting document at each step.
- Understanding MM FI integration in very simple terms.
- Purchase order price determination in SAP. Explained in very simple words.
- House bank, Bank key, Account ID in SAP
- What configuration (FBZP) needed for executing F110 in sap ?
ACCOUNTS RECEIVABLE
- How sap overcomes challenges in accounts receivable process?
- What is customer reconciliation account?
- Understanding order to cash cycle in sap.
- Understanding SD FI integration in very simple terms.
- What is lock box? How lockbox helps in collection from customers?
TAX ACCOUNTING
- How sap helps in tax accounting?
- Tax configuration in sap: Tax procedure, Tax code & Tax jurisdiction code
- Concept of tax jurisdiction code & tax jurisdiction structure
- Significance of “Tax category & Posting without tax allowed” in GL master.
- Tax base amount and Discount base amount
- Assigning tax code V0 & A0 for non taxable transaction?
- Deductible input tax vs non deductible input tax
WITHHOLDING TAX
- Withholding tax in sap explained with example.
- How sap overcomes challenges in managing withholding tax?
- Withholding at the time of invoice or payment
- Withholding tax configuration in sap
- Business place & Section code in sap
- Withholding tax certificate numbering in sap
- Withholding tax report for filling tax returns
ASSET ACCOUNTING
- How sap helps in asset accounting?
- What is meant by asset accounting?
- What is the use of asset class?
- What is the use of depreciation key in asset accounting?
- Depreciation area and Chart of depreciation in sap.
- Derived depreciation area VS real depreciation area?
- Understanding asset accounting configuration needed in sap
- GL account determination for posting asset transaction
- Asset transaction and corresponding accounting document?
- How depreciation is posted in sap?
SAP CONTROLLING