Think Tree Technologies, Inc

Organizational Structure

● The system can be configured to reflect a company’sorganizational structure and has the flexibility to incorporatefuture changes in that structure.

● Chapter Objectives

– Describe the Organizational Structure and how it relates to the

Financial Accounting module.

– Define each Organizational Unit in the structure related to the

Financial Accounting module.

Think Tree Technologies, Inc

Option 1

Option 2

Option n

Hierarchy Workshop

Think Tree Technologies, Inc

S a l e s

O r g a n i z a t i o n

D i s t r i b u t i o n

C h a n n e l

D i v i s i o n

SALES & DISTRIBUTION

FINANCIAL

Client

Bus. Area2000

Bus. Area1000

Company0003

Company0002

Company0001

Bus. Area3000

MATERIALS MANAGEMENT

Company Code

Sto.Loc.0001Plant

0001Sto. Loc.

0002

Plant0002

Sto. Loc.0003

Plant0003

Company Code

1000 2000 3000

10 20 1010

01 0101 020102 02

SAP Hierarchy Structure

Think Tree Technologies, Inc

Client

Chart of Depreciation

Controlling

Area

BusinessArea

DistributionChannel

SalesOrgan.

SalesOffice

SalesGroup

Division

PurchasingGroup

Plant

Shipping Point

StorageLocation

CompanyCode

Loading

Point

PurchasingOrg.

Chart ofAccounts

DunningArea

CreditControl Area

SAP Organizational Structure

Segment

Think Tree Technologies, Inc

Client

Chart of Depreciation

Controlling

Area

BusinessArea

DistributionChannel

SalesOrgan.

SalesOffice

SalesGroup

Division

PurchasingGroup

Plant

Shipping Point

StorageLocation

CompanyCode

Loading

Point

PurchasingOrg.

Chart ofAccounts

DunningArea

CreditControl Area

SAP Organizational Structure (continued)

Segment

Think Tree Technologies, Inc

Client

Chart of Depreciation

Controlling

Area

BusinessArea

DistributionChannel

SalesOrgan.

SalesOffice

SalesGroup

Division

PurchasingGroup

Plant

Shipping Point

StorageLocation

CompanyCode

Loading

Point

PurchasingOrg.

Chart ofAccounts

DunningArea

CreditControl Area

SAP Organizational Structure (continued)

Segment

Think Tree Technologies, Inc

Company Code

Business Area

Credit Control Area

Chart of Accounts

Dunning Area

Client

Financial Module(Organizational Structure)

Think Tree Technologies, Inc

Client

General Electric

Client (Organizational Structure)

Think Tree Technologies, Inc

Client

General Electric

Company Code

Lighting

Company Code

Aviation Services

Company Code

Appliances

Company Code

Aircraft Engines

Client - Company Code(Organizational Structure)

Think Tree Technologies, Inc

Company

Code

Lighting

Company

Code

Aircraft Engines

Company

Code

Aviation Services

Client

GE

Company ID

Consumer

Products

Company ID

Aviation

Company

Code

Appliances

Client - Company ID -Company Code

Think Tree Technologies, Inc

Company Code

Transportation

Systems

Client

General Electric

Company Code

Aviation Services

Company Code

Aircraft Engines

Segment

Engine Repair

Segment

Engine Sales

Client - Company Code -Business Area

Think Tree Technologies, Inc

Chart of Accounts

CAUS CAEU

General Electric

Client

Aircraft Engines

Company Code

Global Finance

Company Code

Chart of Accounts

Aviation Services

Company Code

Client - Chart of Accounts -Company Code

Think Tree Technologies, Inc

General Electric

Aviation Services

Aircraft Engines

DunningArea 2

DunningArea 1

DunningArea 1

Client

Company Code Company Code

Client - Company Code -Dunning Area

Think Tree Technologies, Inc

Credit Control Area

CAUS

Credit Control Area

CAEU

General Electric

Client

Client - Credit Control Area -Company Code

Think Tree Technologies, Inc

Human ResourcesControllingClient

CompanyCode

PurchasingOrganization

PersonnelArea

Production Planning

Sales and Distribution Materials Management

Financial Accounting

SalesArea

ControllingArea

Plant

Benefits of the SAPOrganizational Structure

Think Tree Technologies, Inc

Organizational Structure Chapter Summary

Key Terms

–SAP Hierarchy Structure

–Client

–Chart of Accounts

–Credit Control Area

–Company Code

–Business Area

–Dunning Area

–Purchasing Organization

–Purchasing Group

–Plant

–Shipping Point

–Loading Point

–Storage Location

–Distribution Channel

–Sales Organization

–Division

–Sales Office

–Sales Group

–Sales Area

–Legal Consolidation