Save time and avoid confusion about who reports to whom within a company by using your company’s existing organizational structure to set up a reportable hierarchical matrix.
SAP comes with standard object types for each module. Some examples within HR include position (S), organizational unit (O), and person (P). Custom objects are those objects that do not come standard in SAP and are created specifically within your organization. An example of a custom object might be shift (9S). Users have the ability to create and maintain new object types.
Relationships, special subtypes of infotype 1001, connect the objects. Each relationship has two relationship types, A and B, and for each relationship, SAP sets up the corresponding inverse relationship automatically. When you create new object types, you also must create and maintain the relationships between those objects.
Many companies want to find a way to report off their organizational structure across the company by functional areas. You can create a hierarchy to show who reports to whom within your company, eliminating confusion about accountability and saving you time when reporting off a specific business area.
Using basic reporting in Organizational Management (OM) is one way to create such a report, but it requires you to select units from your organizational structure. You have to know exactly which organizational units to select if you’re reporting off a specific functional area. However, you can use custom objects to select a functional area, such as a sales business group, and automatically pull in all organizational units assigned to that area — for example, national and domestic accounts — without knowing where they are in your organizational structure.
By using custom objects — object types that don’t come standard within SAP software — and by establishing relationships for these objects to build a company-wide hierarchical matrix that relates to your organizational structure, you can easily report off established divisions established within your organization. My team and I came up with eight steps to implement a reportable hierarchy matrix for a food manufacturer. In my next article, I’ll show you how to use this hierarchy to run reports.