SAP FICO

Enterprise Structure
Kodak Consulting Internship
BY AMITA DEVI

Amita Devi 1
SAP FICO

 SAP FICO stand for “Financial Accounting” and

“Controlling”. SAP FI and SAP CO are the important
core modules in SAP that are tightly integrated each
other and helps the business organizations to
maintain and generate financial statements for
effective decision making and reporting. FI & CO are
different set of books, where the SAP FI deals with
external accounting and SAP CO deals with internal
accounting.
Amita Devi 2
Enterprise Structure

The SAP FICO Enterprise Structure serves as the

backbone for an organization's financial management
and reporting processes. SAP FI Enterprise Structure is a
systematic representation of a business structure
(Organizational Units) in SAP system

Amita Devi 3
Define Company

Company is the organizational unit for which individual

financial statements can be drawn according to the relevant
commercial law. A company can comprise of one or more
company codes.
Example: – Reliance Group, Wipro group, etc.
Path to Define Company in SAP :- SAP IMG Path: – SPRO –>
Implementation (IMG) –> Enterprise Structure –> Definition –
> Financial Accounting –> Define Company Transaction code
to “Define Company
Transaction code: – “OX15“
Amita Devi 4
Amita Devi 5
Click on Save icon after updating the required information Choose the
Customizing request from the drop down list or create new one. To create new
Customizing request, click on create request icon as shown below image.

Amita Devi 6
Define Company Code

 Company Code in SAP is the smallest organizational unit of

Financial Accounting for which you draw individual financial
statements like Balance Sheet and Profit & Loss Account for
purpose of external reporting. The Creation of company
code in sap is mandatory.
 PATH :- IMG Reference –> Enterprise Structure –> Definition –
> Financial Accounting – > Edit, Copy, Delete Company Code
 Transaction code to Define company Code in SAP :- OX02

Amita Devi 7
Assign Company Code to Company
Path :- SPRO –> IMG Reference –> Enterprise Structure –> Assignment –> Financial
Accounting – > Assign Company Code To Company Transaction Code :- OX16
Company ID in Company field and click on save icon

Amita Devi 8
Amita Devi 9
Define Business Area

Business area is a separate area of operations or

responsibilities of organizational units of financial
accounting that is used for internal and external
reporting . Different divisions of each business with in a
legal entity are created as Business areas for reporting
of each operational areas.
Transaction Code :- OX03
PATH :- IMG Reference –> Enterprise Structure –>
Definition –> Financial Accounting – > Business area
Amita Devi 10
Amita Devi 11
Maintain consolidation business area

Consolidation business area specifies the central

business segments within a company. If you maintain
consolidated business area in SAP, it is mandatory to
assign business areas to consolidated business areas.
Navigation: – SPRO – Enterprise Structure – Definition –
Financial Accounting – Maintain consolidation business
area. Click on “New Entries” button.

Amita Devi 12
Amita Devi 13
Assign Business Area to Consolidation Business
Area

Assign business area to consolidation business area in SAP. After

you configure business area and consolidation business area in
SAP, you need to perform assignments. The link between business
areas and consolidation business area is established through the
assignment of business area to consolidation business area in SAP.
Configuration steps
You can assign business areas to consolidation business area in SAP
through the following navigation path.
Navigation: – SPRO – IMG – Enterprise Structure – Assignment –
Financial Accounting – Assign Business area to consolidation
business area.

Amita Devi 14
Amita Devi 15
Define Functional Area

 Functional Area is a organisational unit in accounting that classifies the expenses

of an organisation by functions.
 Uses of Functional Area :- The Functional area in SAP is use to create P&L A/C in
Financial Accounting using cost of sales accounting and used to analyse the cost
of sales accounting Examples of Functional Area are :-
 Administration
 sales and distribution
 Manufacture
 Production
 Research and development
 Path:-Go to SPRO → SAP Reference IMG → Financial Accounting → FI Global
Settings → Company Code → Cost of Sales Accounting → Activate cost of sales
accounting for preparation.
Amita Devi 16
Define Credit Control Area

 The credit control area is an organizational unit that

specifies and checks a credit limit for customers.
Credit control area can includes one or more company
codes.
 Transaction Code – OB45
 Path :- SPRO –> Implementation Guide –> Enterprise
Structure –> Definition –> Financial Accounting –>
Define Credit Control Area

Amita Devi 17
Amita Devi 18
Assign Company Code to Credit
Control

Assign company code to credit control area After

creating of credit control, next step is to assign
company code to credit control area.
Path :- SPRO > Implementation Guide > Enterprise
Structure > Assignment > Financial Accounting > Assign
company code to credit Control Area.

Amita Devi 19
Amita Devi 20
Financial management area

 Financial management area in SAP is an organisational unit

that organises the company from aspect of cash management
and funds management.
 You can assign one or more company codes to a FM area in
SAP. The financial management area is taken from the
company when assign company code to an FM area in SAP.
 Navigation: – SPRO – IMG – Enterprise Structure –
Definition – Financial Accounting – Maintain FM Area
 Transaction Code: – OF01

Amita Devi 21
Amita Devi 22
Assign Company Code to Financial
Management

Navigation: – SPRO – IMG – Enterprise Structure –

Assignment – Financial Accounting – Assign company
code to financial management area.

Amita Devi 23
Define Segment

 Segment is a division of an organization for which you can generate

financial statements for the purpose of external reporting. The types of
segments are:
 Business segment: – A business segment is a sub activity of an
organization that relates to the manufacture of a product or provision
of service and that has risks and revenues that differ from those in other
business segments.
 Geographical segment: – A geographical segments is a sub activity of an
organization that relates to the manufacture of a product or provision
of service within a specific field of business.
 Path: – SPRO – SAP IMG – Enterprise Structure – Definition –
Financial Accounting – Define segment.
Amita Devi 24
Amita Devi 25
Thank You
Amita Devi

Amita Devi 26