ITBM and Department vs. Business Unit - what is the difference?

[Mariusz Matrej1]

I am trying to understand what is the difference between Business Unit and Department. In many screens and tables they are both related and I feel confused.

[Appli]

Hi, please check it here

Business units are in charge of certain operations, such as Finance, HR, IT; business units typically contain departments.

Hope it helps

[Rajesh_Singh]

@Mariusz Matrejek 

Business units are parts of your organization that are in charge of certain operations, such as Finance, HR, IT, and so on. Business units typically comprise departments and are associated with a company.

The below image can help you to understand how BU are related to departments

Business unit - A Business Unit represents a segment of a Legal Entity that focuses on a specific business function, such as manufacturing, sales, or marketing. There is no direct equivalent object in SAP, although a Business Unit could be represented by the Business Area in PA or by an Organizational Unit object in OM.

Departments -Divisions are broken down into one or more Departments. This is more typically represents an Organizational Unit object in SAP and is often the lowest denominator of the organization structure.

If my answer replied to your question please mark an appropriate response as correct so that the question will appear as resolved for other users who may have a similar question in the future.

Regards,
Rajesh

[Rajesh_Singh · Accepted solution]

@Mariusz Matrejek -

Happy to see my response helped you. Please do mark as “Correct Answer” so that it can be useful for others for reference.

[Mariusz Matrej1]

Thank you Rajesh. I studied CSDM 3.0 in details and found answers there as well.