Organizational Structure Of FICO

Organizational structure refers to the way a company is structured inside the SAP system for financial and controlling purposes.

Company - Central organizational unit mainly used to get the consolidated reports of different company codes

Company Code - Represents a legal entity and it is the most important unit in FI. All the customizations and transactions are posted to this.

Business Area - Represents separate area of operations such as department wise, product wise, geographical area etc. Main purpose is to get separate financial reports.

Chart Of Accounts - List of General Ledger (G/L) Accounts used to record all the financial transactions of the company.

Account Group - Similar characteristics of G/L is grouped in account group. It controls field status, account number range.

Retained Earnings - Refers to the Accumulated Net Profit/Loss of the company carry forward to the next financial year.

Fiscal Year and Posting Period - Fiscal year is the 12 month financial reporting period of the company, it can be the calendar year, non calendar year or year dependent. Posting period limits the posting of the transactions within the fiscal year.

Global Parameter - Basic financial settings assigned to each company code like fiscal year ,chart of account, controlling area etc. can be seen here.