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FINOC_INFORMATION - Organizational Changes

FINOC_INFORMATION - Organizational Changes

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Organizational restructuring occurs when a company's business model changes due to internal or external factors. Restructuring is necessary and allows a company to adapt, survive, and ultimately grow. These changes are generally initiated by management decisions.

In SAP S/4HANA, a company's organization is represented by reporting units, such as profit centers. A reorganization of these units leads to adjustments in master data and to transfer postings between old and new organizational entities. Sometimes, reorganizing profit centers only leads to changes in the profit center structure and it isn't necessary to define new organizational entities. This type of change is supported in SAP S/4HANA and you can define a new global hierarchy for profit centers.

However, the standard process for profit center reorganization is more complicated and involves dividing up, combining, and replacing profit centers. The Manage Organizational Changes app is designed to assist you in this process. Here, you define an effective date in the future, on which the reassignment of profit centers to other objects occurs. Objects that are affected by the reorganization are reassigned and their stocks or balances are reposted to the new organizational entities. You can use this app to control the overall change process and to navigate to related apps for organizational changes.

When you use the Manage Organizational Changes app to create and process an organizational change, several prerequisite and preparation steps must be completed first. You can find links to more information about the specific steps in the following sections:

Here, you'll find a list of activities, which must be completed to ensure the open items can be reorganized and transferred during an organizational change.
Here, you'll find list of activities, which are available to help you prepare your data and use the Manage Organizational Changes app.

For more information, go to the SAP Help Portal and search for SAP S/4HANA. Then, search for Organizational Changes in Accounting.






CPI1466 during Backup   PERFORM Short Reference  
This documentation is copyright by SAP AG.

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