Organisational Structure

[Former Member]

Dear SAP GURU,

My client [one year old interior design comp]. during as-is requirment, my client mention us.for this fiscal year[2012], they have only one legal entites.

after next  fiscal year onwards they have 5 legal entites and 7 branches all  within country.

                         option 1) total 7 branches (each branch have 5 legal entites) = total 35 legal entites.[this detail given by my client their future plan]

                          option 2) 5 legal entties have 7 branches (here we use branches all business area).[ this option suggestion by my comp sap team]

which is best option ist or iind?. i am very confussed to give suggestion to my client. please help me. i need org structure for above scenairo?

Regards,

Suresh.

[praveen_jagadeesan · Accepted solution]

Dear Suresh,

It is just a business requirement question,

Option 1: If client insist for legal reporting in all the branches then you can go with the option 1 ...but for sure no company will ask legal reporting at branch level.

Option 2 : will be perfect for the scenario you explained, 5 Co.Code and 7 Business Area...instead of Business area go for Segment Concept.

Hope it is a business decision have a detailed discussion with client and explain the necessity of Co.Code and Segments and reporting advantages in SAP on Segments. They will get convinced for Option 2

All the best.

thanks and regards

Praveen Jagadeesan