Structure Definitions

Enterprise Structure

Enterprise Structure allows us to divide the organization into Personnel Area and sub-areas. The personnel area is an organizational unit that represents a specific area of the enterprise and is organized according to aspects of personnel, time management and payroll. A personnel area is divided into several personnel subareas. Personnel subareas contain the business characteristics. Personnel Area is associated to the Company Code & Country Grouping. When you create a personnel number, the corresponding company code is allocated to it in the infotype Organizational Assignment (0001), depending on the enterprise structure in which the employee is situated. A personnel subarea is an organizational unit that represents a specific area of the company organized according to certain aspects of personnel, time management and payroll. 

Client

    The client is, in accordance with commercial law, an organizational and data technical isolated unit within the R/3 System, with separate master records and its own separate record of tables. A client’s area of jurisdiction can correspond to a unit as small as a company, or as large as an entire enterprise.

Company Code

    The company code is the smallest organizational unit of external accounting in which a complete and isolated financial accounting can be created. All events that affect the company code and the creation of all statements for a legal financial statement, for example balances, profit and loss calculation, are contained within the company code organizational units.

Personnel Area

    The personnel area is an organizational unit. From a personnel administrative, time management and payroll organizational point of view, a personnel area represents a delimited enterprise area. The personnel area is only used in Personnel Administration and is unique within a client.

Personnel Subarea

     Personnel areas are sub-divided into personnel sub areas. The personnel sub area is only used in Personnel Administration. The groupings linked to the personnel sub area determine which entries from the subsequent screen are allowed for an employee of a particular company code/personnel area. Groupings are used for validation of master and time data. Groupings are also used to check the plausibility of data.

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.

Key Considerations to Classify Enterprise Structure:

•       Geographical Locations of Enterprise

•       Defining of pay scale and wage type structure

•       Defining planned working hours

•       Defining Holidays and Holiday Calendars

•       The personnel area is a selection criterion for evaluations.

•       The personnel area is an entity for authorization checks.

•       Statutory Deductions and Taxes

Personnel Structure

The employee group allows you to divide your employees into groups and allows you to define their relationship to the enterprise. The following essential organizational functions can be carried out using the employee group: generating default values when entering data; for example, for the payroll accounting area or for the basic pay of the employee, generating a selection criterion for evaluations, generating a unit for the authorization check.

Employee Group:

     The Employee Group allows an organization to divide employees into groups. The organization can then   use these groups to set up a corresponding employee’s status in the system.

Employee Sub Group:

     Employee Subgroups further divide employee groups according to the employee status within the organization and are identified with a two-character, alphanumeric code.

Payroll Area

     A group of employees for whom payroll should be run together, and at the same time. A payroll area is used to group employees together who have the same payroll periodicity, for whom the payroll runs at the same time, who have the same payment date, and to whom the same earliest possible retroactive accounting period applies.

Key Considerations to Classify Personnel Structure:

•       Specification of processing in payroll accounting

•       Specification of validity of primary wage types

•       Specification of validity of work schedules

•       Specification of validity of pay scale groups

•       Specification of validity of time quota types

•       It is used as a selection criterion for reporting.

•       It is used as an entity for authorization checks.