Elements of the Enterprise Structure

Client

SAP system clients have an independent status both in legal and organizational terms. The clients within the system can be distinguished by a three-character, alpha-numeric code and are defined in Customizing.

When your SAP system is installed, it is set up with two clients:

Client 000

Client 000 is the SAP standard client. The SAP original system is held in this client. Client 000 contains default values for all tables. SAP updates the default values with every system upgrade and release upgrade.

Caution
You are not allowed to work in this client.

End of the caution.
Client 001

The content of this client is the same as the 000 client. You can do your customizing in this client in order to adjust the standard system to your requirements.

Clients are a technical structural feature of a SAP system. The system makes a distinction between client-independent and client-dependent elements. Client-independent elements are objects that are used in all clients. Client-specific elements are objects that are only used in a specific client.

The following objects are defined as client-independent:

data structures, such as field definitions, table structures, and file set-ups
client-independent tables
transactions
programs
Standard reporting
Authorization objects
SAP Library

The following objects are defined as client-dependent:

client-specific tables that must be copied from the original client, that is, client 000
HR master records
user master records
Authorization profiles
customer-specific programs

The following factors must be taken into consideration when you decide whether or not to create a client:

You have to adapt the system client-specifically to the enterprise structure.
You cannot access personnel data in other clients. Each client’s personnel data is protected from unauthorized access.
You cannot perform reporting across all clients, and you cannot receive or assign client-independent access authorizations.
You cannot exchange data between clients.
If an employee moves between two clients, you must assign him or her a new personnel number.

Company Code

Within a client, the company code represents the highest level of the enterprise structure. In Customizing, the company code is defined by a four-character, alpha-numeric code.

If the Controlling , Financial Accounting , Materials Management or Sales and Distribution application components are set up in addition to the Personnel Administration component, you must set up the company code so that it also meets their requirements. This is not tantamount to a restriction: You define all of the HR System’s most important control data at the level of the personnel subareas, and these levels belong to Personnel Administration .

In Personnel Administration , the company code has the following control functions:

The company code is used to generate default values for data entry, for example, an employee’s payroll area.
The company code is a selection criterion for reporting.
The company code constitutes an authorization check unit.

At the company code level, the following control features are assigned which are relevant for Personnel Administration :

the default country key for the employee’s personal data, address data, and bank data.
a default value for the currency key for employee’s basic pay.
a language code for text output, for example, employee remuneration information.

Note
This language code is not the same as the logon language, which determines the language used in the on-line system.

End of the note.

Personnel Area

Personnel areas divide a company code into sub-units. The individual personnel areas in a company code are defined in Customizing and have a four-digit alpha-numeric identifier.

The personnel area has the following functions:

The personnel area is used to generate default values for data entry, for example, an employee’s payroll area.
The personnel area is a selection criterion for reporting.
The personnel area constitutes an authorization check unit.

Personnel Subarea

Personnel subareas are a subdivision of the personnel area. Organizational control of the main HR subareas, namely the pay scale and wage type structures and work schedule planning, takes place at the personnel subarea level. In Customizing, the personnel subarea is defined by a four-character, alpha-numeric code. The respective country-specific control features are stored here.

The personnel subarea has the following organizational functions:

Specifying the country grouping; this controls the dialog for entering country-specific personnel data and the setting up and processing of wage types and pay scale groups in Payroll ; within a company code, the country grouping must be unambiguous
Assigning a legal entity to differentiate between the individual companies from a legal point of view
It specifies groupings for Time Management . This enables you, for example, to set up work schedules, substitution types, absence types, and leave types on the basis of a specific personnel subarea.
The personnel subarea is a selection criterion for evaluations.
The personnel subarea is used to generate default values for pay scale area and pay scale type for an employee’s basic pay.
It specifies the public holiday calendar.
Defining personnel subarea-specific wage types per personnel area
It assigns a legal person for payroll.

Organizational Key

The organizational key improves the enterprise structure and the personnel structure. You can use an organizational key to carry out a further organizational assignment for employees. The elements company code, personnel area and personnel subarea from the company structure, help to make up the organizational key. The organizational key is a part of the authorization check. If you require further information on the organizational key, please see the Personnel Structure from the Administrative Perspective section.