Organizational Structure according to SAP Hierarchy

SAP Hierarchy, or Organizational Structure, is the fundamental functional architecture within the SAP system. It must be defined in order to use the SAP system. Hierarchy consists of the following views for the current SCEIS solution (there are others in the SAP system that are not in scope for SCEIS Phase I):

Financial Accounting: Used for modified and full accrual accounting

  • Company Code is an organizational unit used in accounting to structure the business organization from a financial accounting perspective. Any transaction process in the SAP system requires a company code. There will be only one company code for the State of South Carolina: SC01.
  • Business areas represent areas of operation and responsibility within an organization. These are agencies, lines of business or locations where financial statements may be required. Each SC Agency will be represented by a Business Area.
  • Functional Area is a structure that identifies and classifies financial transactions by overall purpose, objective or function. Although originally identified as the potential substitute for the mini-code, or part of it, it seems at this point that Functional Area will not be used as part of the SCEIS implementation.


Controlling: Used for managerial accounting

Controlling Area represents similar cost accounting and managerial control rules, since it contains settings that impact master data and transactions within that Controlling Area. You must have a Controlling Area to use Controlling module functionality, such as Cost Center Accounting, or Internal Orders. There will be only one Controlling Area for the State of South Carolina: SC01.


Funds Management: Used for budgetary accounting

Funds Management Area represents similar budgetary accounting and control rules. You must have a Funds Management Area in order to process budget transactions. There will be only one Funds Management Area for the State of South Carolina: SC01.


Logistics (Materials Management)

  • Plant is a Materials Management element that represents where materials are procured, requested or moved. There will be one Plant per Agency in the SCEIS solution.
  • Storage Location is an organizational unit facilitating differentiation between the various stocks of a material within a plant. It has been defined as one Storage Location per plant (and per agency), with the exception of the Budget and Control Board.
  • Purchasing Organization represents the area of responsibility within an organization for procurement of materials and services. For the SCEIS solution, there will be only one Statewide Purchasing Organization.
  • Purchasing Group is a buyer or group of buyers responsible for certain purchasing activities. The purchasing group is internally responsible for the procurement of a material or a class of materials, and usually the principal channel for a company’s dealings with its vendors.


Human Resources

  • Personnel Area is an organizational unit representing an area within an enterprise delimited according to personnel administration, time management and payroll accounting criteria. It identifies the state agency to which an employee belongs. It will be used as a selection criterion for employee searches or evaluations. There will be one Personnel Area per agency.
  • Personnel Sub-Area is an organizational entity that represents part of a personnel area, delimited according to personnel administration, time management and payroll accounting criteria. There will be one Personnel Sub-Area per Personnel Area.
  • Employee Groups are the main classifications of employees for the State of South Carolina:

Employee Subgroups are the sub-classifications of an employee group, based on the type of employment:

  • Payroll Area identifies employees belonging to a particular payroll run, whether they are bi-weekly, semi-monthly or weekly. In the State of South Carolina, Payroll Area 99 will be used as a non-paying payroll area. When the Payroll module is implemented,Payroll Area S1 will be used to represent the semi-monthly payroll area for all employees.


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