Enterprise Organizations and Standard Hierarchies
Use
For the cost centers or profit centers standard hierarchy, you can specify on what date changes in the
enterprise organization the system is to transfer to the appropriate standard hierarchy. You can also generate additional alternative hierarchies (for planning purposes for example).
Before you generate a hierarchy, first run the consistency checks on the enterprise organization. To do so, choose Enterprise organization ® Check.
Features
Generating a standard hierarchy from the enterprise organization
You can generate your standard hierarchy for a controlling area at any given key date.
The system determines the current fiscal year from this key date. In Customizing you define the number of fiscal years (starting from the current fiscal year) to be taken into consideration in the past and in the future (for more information on this, see Customizing for the application component in question under Enterprise Organization ®
Enter Settings For Enterprise Organization).The entries you make here are used by the system to determine a validity period that in turn controls which objects the standard hierarchy contains.
The system then determines all the organizational units and links from the enterprise organization that apply to the standard hierarchy and which lie within this validity period.
If the master records for the objects are different from the corresponding data in the enterprise organization, the system changes them to match the enterprise organization. This adaptation is a standard setting for when you generate the standard hierarchy from the enterprise organization (see The Inheritance Principle).
Generating an alternative hierarchy from the enterprise organization
In addition to the standard hierarchy, you can also generate alternative hierarchies to represent past or future organizational structures.
You can then for example make changes now for the coming fiscal year, but not incorporate these changes in the standard hierarchy until the start of the new fiscal year. Likewise, for reporting purposes you can compare the current organizational structure with that of the previous year.
Generating a standard hierarchy from an alternative hierarchy
During a fiscal year, you made changes to the enterprise organization that have not yet been incorporated into the standard hierarchy. However, for planning purposes, you generated an alternative hierarchy, which corresponds to the current status of the enterprise organization.
For the new fiscal year, you now want to incorporate these changes into the standard hierarchy. You can do so by generating the new standard hierarchy from the current alternative hierarchy.
Generating an enterprise organization from a standard hierarchy
To generation the enterprise organization for the first time, you can generate it for a controlling area from an existing standard hierarchy.
Using the functions in the enterprise organization, you can then edit this standard hierarchy.
Activities
You can also generate the standard or alternative hierarchy from the application, by choosing Enterprise organization ® Generate.