4. SAP Organizational Structure, Master Data, and Financial Organization

This set covers SAP org structure, master data, transaction data, and the finance-oriented organizational structure.

What is the SAP organizational structure and why is it foundational?

It's the top-of-the-pyramid foundation linked to every master data element and transaction; it drives all business processes.

Name two examples of organizational structure elements in SAP.

“Controlling area” and “company code”.

What comes after the organizational structure in SAP data hierarchy?

Master data

What is master data in SAP and how is it used?

Common data stored once and referenced by modules for transactions; examples include general ledger accounts, cost centers, and customer master records.

What is transaction data in SAP and how does it relate to master data and org structure?

Transactional events recorded in the system; when posted, they reference the master data and the organizational structure.

Where are financial transactions recorded in SAP?

In the financial modules; journal entries are recorded in the General Ledger, AP invoices in Accounts Payable, and AR invoices in Accounts Receivable.

What is the role of the General Ledger, Accounts Payable, and Accounts Receivable modules in SAP?

The General Ledger records journal entries; AP records supplier invoices; AR records customer invoices.

Why do other SAP modules reference the financial organizational structure?

Because the financial structure underpins all modules and supports running the business.

What is the responsibility of the finance team regarding organizational structure?

Translate the corporate legal and accounting structure into the SAP organizational structure and related master data.

What organizational elements structure the corporation in SAP, and why is defining this structure important?

Company legal structure and cost controls; defining it is a core foundation step for setting up SAP and enabling proper reporting and control.