One of the first steps in the implementation of the R/3 System involves mapping the structure of the respective enterprise onto the organizational units of R/3. This structure mapping must ensure that

• all business processes can run smoothly, using resources as efficiently as possible
• the requirements for internal and external reporting are met

Different types of organizational units are available in the R/3 System to represent enterprise structures in the system.

• The R/3 System
• Operating concern
• Controlling area
• Business area
• Company code
• Plant

When you implement the system, you must set up as many organizational units as you need. You then map the enterprise structures to the organizational units.

Mapping the organizational units to the R/3 organizational units could look like this, for example:

A central R/3 System is set up for enterprise in which all the functions for Accounting and Logistics are mapped.

Profitability analysis is executed in an operating concern. Cost center and cost element accounting take place in a controlling area. Business areas allow the creation of internal balance sheets for the business units. A company code controls the financial accounting area and represents the company in the legal sphere.

Locations are represented by plants.