Creating Organizational Units in SAP HR: A Step-by-Step Guide

Organizational units (OUs) are fundamental building blocks in the SAP HR (Human Resources) module. They represent the hierarchical structure of an organization, reflecting departments, divisions, teams, or other groupings within the company. Creating and managing organizational units effectively is essential in processes like:

• Employee reporting lines
• Personnel management and administration
• Workflow and approval chains
• Cost center assignments

Methods for Creating Organizational Units

SAP HR offers several ways to create organizational units. Here are the most common methods:

1. Simple Maintenance

• Transaction Code: PPOCE
• Explanation: Ideal for creating individual organizational units with basic information.
• Steps:

1. 1. Go to Transaction code PPOCE.
   2. Select ‘Organizational Unit’ as the object type.
   3. Click the ‘Create’ button.
   4. Enter the short name and descriptive text for your new OU.
   5. Assign the new OU to an existing higher-level OU.
   6. Provide a valid start date.
   7. Save your changes.

2. Organizational Management Expert Mode

• Transaction Code: PPOME
• Explanation: It provides more advanced options for creating and editing OUs and their relationships.
• Steps:

1. 1. Navigate to transaction code PPOME.
   2. Select your existing organizational plan.
   3. Right-click on the OU under which you want to create the new OU.
   4. Choose ‘Create’ -> ‘Organizational Unit’.
   5. Define the short text, description, and other details for the new OU.
   6. Save your organizational structure.

3. Transport Requests

• Explanation: Used when significant changes require transport from development to testing to production environments.
• Steps:

1. 1. Create OUs in your development system (using one of the methods above).
   2. Generate a transport request.
   3. Release the transport request and move it through the stages of your SAP landscape.

Key Considerations When Creating Organizational Units:

• Organizational Structure: Carefully plan your organization’s structure before creating OUs. Consider departments, reporting lines, and geographic locations.
• Naming Conventions: Establish clear naming conventions to enhance manageability and ease of identification.
• Relationships: Define how OUs relate to each other. This impacts reporting, workflows, and access rights.
• Validity Dates: Start and end dates determine when an OU is active or inactive.

Example: Creating a Marketing Department OU

1. Go to transaction code PPOCE.
2. Choose the object type ‘Organizational Unit’ and click ‘Create’.
3. Enter ‘MARKETING’ as the short name and ‘Marketing Department’ as the description.
4. Assign the new OU under the top-level ‘Executive’ OU.
5. Set the valid-from date.
6. Click ‘Save’.

Additional Tips

• Use the Object Manager in SAP GUIs to search for existing OUs.
• Take time to plan your OU structure hierarchically. It’s harder to rearrange them later.
• Test the impact of new OUs with reporting and data access before making them live.

By following these guidelines, you’ll effectively establish organizational units within your SAP HR system, ensuring optimal organization, data accuracy, and efficient HR processes.