Introduction
Organizational Management (OM) is the central source of organizational information in the C4C solution. It is used for modelling the organizational structure and it provides a graphical representation through an organizational chart. In addition, it reflects entities and aspects (legal, operational and functional) of the company. SAP C4C accesses OM whenever business processes require information related to company’s organization.
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For ensuring an appropriate OM, the following guiding principles exist:
- Time dependency: all information stored is time dependent.
- Active version vs. Planning version: the system has the ability to differentiate between the planning version and the active version of the organizational information.
- Consistency checks: there are some checks which help maintaining OM consistent all the time.
- Partial activation: it is possible to activate smaller parts of the organizational structure, while continuing to work with other parts.
Purpose
The aim of this document is to help consultants to clarify what does each function of the Organizational Management means as they are not detailed.
Organizational Units
These are the functional units of a company and form the basis of an organizational plan. Depending on how a company is organized, the organizational units may be departments, groups or, project teams.
Organizational Unit detail in C4C
When working with an organizational unit in C4C, there are several tabs which give meaning and sense to each unit. I will give a deeper detail for: General, Definitions and Functions.
Tab: General
Following, I will list the meaning of some of the relevant fields:
- Org. Unit ID: this is the unique identifier, once the OM has been activated, it is no longer editable.
- Org. Unit Name: the value contained on this field is the one that will appear on reports and business documents.
- Valid From/To: validity period for organizational unit.
- Working day calendar: specifically used for time management and payment optimization.
- Org. Unit. Manager: defines the service agent or employee with managerial responsibility over this organizational unit.
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Tab: Definitions
The following properties are used for defining the organizational unit:
- Company: it represents an org. unit that is financially and legally independent, that is not tied to a geographical location, and is registered under business law. It includes all legally registered entities, such as associations, cooperatives, or any other legal persons that release annual financial statements. Each company has an official country of registration and a default currency. Each org. structure must contain at least one org unit that is defined as a company.
- Business Residence: it represents a part of your company within a geographic area. The business activity of this business residence is subject to uniform tax processing, its registration with public authorities is unique, and there is only one valuated stock per material for this business residence. A business residence can be, for example, a city or region, even if your company has several locations with different addresses within this city or region.
- Reporting Line Unit: it represents an org. unit that has personnel responsibility within the reporting line. If a manager is assigned to the reporting line unit, all employees on the org. unit and below it report to that manager.
- Program: it represents a group of related projects managed collectively to achieve a common goal. The assignment of projects to a program is optional.
- Segment: it represents a company area whose business activities result in revenue and expenditure, and whose operating income is regularly monitored for the purpose of assigning resources and evaluating performance. The segment collects the balances of all lower-level profit centers and offers additional financial reports to those provided at profit center level.
- Profit Center: it represents a company area for which a separate period-based profit is determined. It is used for evaluating and regulating the activities of the company area in a profit-oriented manner. The profit center provides visibility on profit and loss via reports.
- Cost Center: it represents a defined location of cost incurrence, for which costs are recorded separately. A cost center is used in cost center management accounting to collect and allocate overhead costs.
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Tab: Functions
On this tab, customer defined the functions that correspond to a specific organizational unit such as:
- Sales Organization: it indicates that the org. unit to which it is assigned represents the head org unit of a sales hierarchy. An example of a sales organization is the head organization in a country, such as domestic sales. The sales organization is also the relevant org unit for defining sales-relevant master data. Sales data in the product and account master can be defined in relation to the sales organization in combination with the distribution channel - this combination is known as the distribution chain. Price lists can be defined based on the distribution chain. In a sales document, such as a sales order or service order, the combination of the sales organization and the distribution channel appears.
- Sales: it indicates that the org. unit to which it is assigned is responsible for the processing of sales quotes and sales orders. In sales reporting, sales data is aggregated at the level of sales units. The sales organization is a specific type of sales unit, which is used to head complete areas, regions, or countries.
- Marketing: it indicates that the org. unit to which it is assigned is responsible for target group and campaign management, capturing of responses to campaigns, market and competitor information, and leads generation.
- Service Organization: it indicates that the org. unit to which it is assigned represents the organization that provides customer service. Below the service organization, customer service units can be defined to represent sub-entities of the service organization. If the services provided are sold to your customers,
you will also require a sales organization.
- Customer Service: it indicates that the org. unit to which it is assigned is responsible for the management, monitoring, and execution of services, such as the handling of product inquiries, providing recommendations, and pre- and after sales support. Customer service can be provided by a service desk or by field and in-house service teams.
- Strategic Purchasing: it indicates that the org. unit to which it is assigned is responsible for procuring products, identifying and managing sources of supply, and establishing long-term relationships with suppliers. Responsibilities include the creation of requests for quotation, and the negotiation and management of contracts with suppliers.
- Operational Purchasing: it indicates that the org. unit to which it is assigned is responsible for the procurement of materials and services from external suppliers. This includes the automation of the procurement process and the handling of purchase requests, purchase orders, purchase order acknowledgments, non-stock materials, and goods and services receipts.
- Cash Flow Management: it indicates that the org. unit to which it is assigned is responsible for: Cash and liquidity management, Payment management, Expense and reimburse management and, tax management.
- Financial and Management Accounting: it indicates that the org. unit to which it is assigned is responsible for: General ledger, Fixed assets, Cost management and, Inventory valuation.
- Customer Invoicing: it indicates that the org. unit to which it is assigned is responsible for: Receivables and Invoicing of customers for the supply of products and services
- Supplier Invoicing: it indicates that the org. unit to which it is assigned is responsible for: Payables and Supplier invoicing.
- Human Resources: it indicates that the org. unit to which it is assigned is responsible for: Personnel administration, Time administration, Compensation, Payroll, Expense and reimburse management.
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