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  • Organizational Structure In SAP

    The fundamental purpose of any ERP system like SAP is to integrate the various business functions like finance, HR, logistics, etc. so as to facilitate the flow of information between them. This helps the entire business to function as a single coherent and cohesive unit and allows the senior management to understand the impact of a decision on the business as a whole.

    Any successful ERP system must allow the business processes to be efficiently mapped into it. SAP facilitates this mapping by providing standard organizational elements like client, company code, fiscal year variant, etc. All these organizational elements with their own significant roles are configured and integrated to represent the actual business processes.


    The client is the highest level in the SAP organizational structure hierarchy. SAP stores master data as well as transactional data in tables in a database. Every client has its own set of master records and tables i.e. every client has its own set of data in the database. If changes are made to the data in one client, then the data in other clients is not affected.


    SAP best business practices suggest the creation of at least the following three clients in any SAP landscape: