Basic Enterprise Structure in SAP

Written By Ranjith Thangaraj

1.     Company (OX15)

  • A company in SAP is a single legal entity, such as a corporation, partnership, or sole proprietorship, that operates independently.

2.    Company code (OX02)

  • A unique identifier is a key component in an accounting system used to generate a balance sheet and calculate profit and loss.

3.    Assign Company code to Company (OX16)

  • The company code represents the legal entity of an organization, allowing for financial transactions, tracking, analysis, and maintaining a book of accounts at this level.

4.     Fiscal year variant (OB29)

  • The Fiscal Year Variant in SAP is the time period used to create financial statements for a fiscal year, denoted as K1, K2, etc. in the standard SAP system, and V1, V2, etc. for non-calendar fiscal year variants.

5.    Assign fiscal year variant to company code (OB37)

  • SAP assigns a fiscal year variant to a company code, linking a specific configuration to a specific company or legal entity, defining the fiscal year's structure.

6.    Posting period variant (OBBO)

  • SAP's posting period variant (PPV) governs fiscal year posting periods, controlling accounting document postings and timing, ensuring accurate and timely financial reporting.

7.     Assign posting period variant to company code (OBBP)

8.    Open, Close posting period (OB52)

  • Posting periods can be opened and closed simultaneously, with the current period being the only one open, and all other periods being closed.

9.     G/L Account Group (OBD4)

  • The G/L Account Group is a classification used to group similar G/L accounts for easier management and reporting purposes.

10.    Field status variant (OBC4)

  • The system controls the filing of transactions by providing options such as suppress, required entry, and optional entry.

11.     Assign field status variant to company code (OBC4)

12.    Chart of account (OB13)

  • It is a structured list of all General ledger account: each general ledger account in SAP is defined in the chart of accounts.

a)     Operational: Day by day transaction

b)     Group: Consolidation financial statement

c)     Country specific: Legal requirements of the country

13.     Assign chart of account to company code (OB62)

14.     Retained earnings account (OB53)

  • cumulative income or loss carry forward to the next fiscal year

15.   A) Maintain currency exchange

Average Rate(M) – If not maintaining any exchange rate in document type ,(OBA7), M will apply the default           

          Bank selling rate(B) - The bank selling rate is the rate at which a company  

     sells foreign currency to a bank, typically higher than the buying rate.

     Bank buying rate(G) - Bank buying rates are used by companies to buy   

    foreign currency from banks, typically lower than selling rates due to   

     exchange margins.

B)    Create Currency Exchange Rate (OB08)

C)    Create currency Ratio (OBBS)

  • The currency ratio is a setting that defines the exchange rate relationship between two currencies. It is used to convert amounts from one currency to another.

Ranjith Thangaraj
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