Introduction

The enterprise-structure model visualizes the multi site structure of an organization.

The multisite concept consists of enterprise units that contain entities that belong to the same financial and logistic company. Therefore, an enterprise unit’s entities must all belong to the same logistic company, but a logistic company can be linked to multiple enterprise units.

This way, you can divide a logistic company over multiple countries, as the enterprise units can be located all over the globe with their own currency.

In an Enterprise-Structure Model you can place enterprise units on a map and specify relationships between them. Furthermore, a complete supply chain can be modeled because external business partners can also be included in the Enterprise Structure Model.

This can be done by adding enterprise units of category type Supplier or Customer to the model. One Enterprise Model depicts the situation of one LN package combination.

Only the enterprise units are defined in the Dynamic Enterprise Modeler; all the other building blocks are defined in different EMM sessions in the Parameter für Unternehmensplanung package and are vital for the functioning of an Enterprise Structure Model. An enterprise unit is nothing more than a collection of key entities interrelated by the financial and logistical companies they belong to. Key entities are projects, warehouses, or departments linked to an enterprise unit. For more information about companies and entities, see the User Guide for Multicompany Structures (U9504).

The financial company you link to an enterprise unit registers all accounting transactions that result from the activities carried out in the enterprise unit. These activities consist of the operational and logistical transactions caused by a logistical flow of goods and the performing of production, service, warehousing, and support activities. In contrast to a logistical company, a financial company cannot cross borders, because it is restricted to one currency area to do accounting and tax reporting of each site in each country’s local currency. The financial company determines the currency system and currencies.

A logistical company is only used for logistical transactions, such as the production, sales and purchase, and transportation of goods.

The logistic and financial companies are linked to each other through enterprise units.

All kinds of relationships can be defined between enterprise units, such as goods flows, financial flows, and information flows. If a relationship is defined between two enterprise units, then that relationship applies to all entities belonging to those enterprise units.

This diagram shows the Enterprise structure model procedure