Heirarchy of Company Code

[Former Member]

Dear Friends,

Please help me in creating Organisation structure.

My client has one Company under that company two comapny code are there. under that company code we have again two subsidary company each.

Means suppose company is A under A company there is two co code B and C.

Now My client has two subsidary company under co code B. He wants co code D and Co Code E under B. He all this wants for consolidation purpose.

Please give me the solution.

I will assign full points.

[Former Member]

Hi Reva Naik,

i think u have a Group A

Under Group A..U Have Companies like B and C.

now in Co.Code B,there are two more companies..Right?..Then u consider those companies like Business Areas.Clear?

u r org.Structure will be ..

A

/ \

B C

/ \

d e

assign point if helpful..

Suresh

[Former Member]

Hi Suresh,

Thanks for your prompt reply.

But my D & E comapnies has their own legal entity. It won't be problem if i defined it as an business area?

Your inputs area heighly appreciable

Thanks & Regards,

Reva.

[Marssel700]

Reva,

most indicated for the those organizational units with bigger level of independence is the Company code creation.

In case that these organizational units don’t have a great prime dependence, business area is better.

Basic differences between Company codes and Business area:

1 - Company code

a. Different charts of accounts.

b. Different information in the segment “Company code" in master data.

c. Better taxes application.

2 - Area Business:

a. Easy configuration.

b. Easy rules use.

c. Quickly Reports Extraction.

d. Easy elimination.

I advise you to create Company code due the diversity of information that you can attribute it.

In the cases of support companies or department characteristics use Business area duo better easy registers elimination.

Best Regards

[Former Member]

Hi Reva,

check out this link..u may get some idea..

http://help.sap.com/saphelp_47x200/helpdata/en/e5/078d0b4acd11d182b90000e829fbfe/frameset.htm

thanks

suresh

[Marssel700]

Hi,

In this case you can creat all these companies. You must pay attention if they are complete companies or sector for consider business area creation instead them.

In SAP FI we don't have "standard hierarchy" to companies codes. All will keep same level.

Rgds