From the course: SAP S/4 HANA Financial Accounting Overview
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Organizational elements - SAP ERP Tutorial
From the course: SAP S/4 HANA Financial Accounting Overview
Organizational elements
- As an example, what are the elements in an organizational structure? We'll take you through a hypothetical example. At the very top of the organizational structure is something called an operating concerning SAP. This isn't something that you need to use all the time. Typically, there's only one for an organization. But this is really an area that would be used for cost and profitability. In this example we said Global Bikes is the overall operating concern for the company. The next structure or part of your structure is called the controlling area. Again, in many cases you can use only one for a company. Or you could have multiple, but having one is very common in current SAP permutations even for large companies. The controlling area, again, also similar to the operating concern represents a common area for cost control. So the controlling area is really more on cost control. The operating concern is more on profitability. But the more that you want to look across a large…
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