Understanding Organizational Structures

An organizational structure is used to group business units for reporting and analysis. With an organizational structure, you can:

• Create a hierarchy with up to 50 levels.

  Each structure can contain up to 50 levels of category codes.

• Use category codes to define the levels of the hierarchy.

  Create organizational structures by sequencing the category codes that are defined for each business unit.

• Move business units or groups of business units within the hierarchy.

You can define multiple organizational structures for various purposes, such as financial, geographic, and responsibility reporting. Each structure can be as simple or as complex as needed.

To define an organizational structure, you assign a sequence to the category codes that you set up for your business units. This sequence determines where each business unit appears in the hierarchy. The hierarchy is not date effective. You can define multiple organizational structures and different hierarchies within each organizational structure.

You use the Business Unit Structure Definition program (P0050A) to assign sequences to the category codes for your business units. This program updates the Structure Definition File (F0050A).

After you define an organizational structure, you can use the Business Unit Structure Tree View program (P0006A) to review or revise the current structure or, if applicable, to review or revise a "snapshot" of the structure.