The organization of a company can be depicted in various ways. In the R/3 System, the organizational structure - rather than the organizational plan, for example, which represents functional areas and hierarchical relationships - is used for the purposes of personnel administration. This is also the structure that is required for payroll implementation.
In the area of master data, a company's structure is represented by the company code, personnel areas, and personnel subareas. If necessary, you can use the component Personnel Planning and Development to represent this structure at an even finer level of detail. However, this is not the case with the GB Model Company.
The GB Model Company is treated as one personnel area, subdivided into two personnel subareas. In effect, this company has no subsidiaries (in practice it is itself a subsidiary), but has two distinct geographical locations, Warrington (North West England) and Edinburgh (Scotland). These two regions have different holiday calendars, and civil and criminal legal systems. However, the same tax laws and business practices are in place in all parts of the country.