SAP HCM (HR) Organizational Structure Basics: What is Personnel Area ?

In SAP, Personnel Areas represent a subdivision of the company code, applicable to employees. The individual personnel areas in a company code are defined in Customizing and have a four-digit alphanumeric identifier. The personnel area is only used in Personnel Administration and is unique within the client. They perform the following functions:

  • enables the generation of default values for data entry (eg determination of payroll accounting areas);
  • acts as a selection criterion for reporting; and
  • acts as a unit in authorisation checks.

Although a Personnel Area can only belong to one company code, they are further divided into Personnel Subareas.

Personnel Area in SAP HR
The personnel area is an organizational entity, which can be defined on the basis of geographical and functional attributes of enterprise

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