How to Configure Enterprise Structures
In any Enterprise Resource Planning (ERP) system, Enterprise Structure configuration is the first and most essential step. It defines the legal and organizational framework of a company and impacts how transactions are recorded, how data flows, and how reports are generated. Whether using SAP, Oracle, or any other ERP tool, proper enterprise structure setup ensures the system reflects the company’s real-world operations. What is an Enterprise Structure? An enterprise structure represents the hierarchy of a business in the ERP system. It includes key organizational units such as: Company Code – Legal entity for financial reporting Business Area – Represents different segments or departments Sales Organization – Handles sales and distribution Plant/Location – Physical or logical production/storage units Personnel Area – HR structure representing employee locations or groups These elements work together to define how business transactions are processed and reported. Steps to Configur...