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.
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