Organization Structure/Enterprise Structure in SAP MM

 Organizational Structure Hierarchy in SAP

Client:

• The client is a commercial, organizational unit within the R/3 System, with its own data, master records, and set of tables.
•  From a business perspective, the client forms a corporate group.

Path to Define Company:

T Code	SPRO
Path	IMG⇒ Enterprise Structure ⇒ Definition ⇒ Financial Accounting ⇒ Define Company

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Plant:

• A plant is an organizational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance, and materials planning.
• A plant is manufacturing facility or branch within a company.

Path to Define Plant:

T Code	OX10
Path	IMG⇒ Enterprise Structure ⇒ Definition ⇒ Logistics General ⇒ Define Copy, Delete, Check plant

Storage Location:

• An organizational unit that allows the differentiation of material stocks within a plant.
• Inventory Management on a quantity basis is carried out at storage location level in the plant.
• Physical inventory is carried out at storage location level.

Path to Define Storage Location:

T Code	OX09
Path	IMG⇒ Enterprise Structure ⇒ Definition⇒ Material Management  ⇒ Maintain Storage Location

Purchasing Organization:

• A purchasing organization is an organizational level that negotiates conditions of purchase with vendors for one or more plants or companies. It is legally responsible for completing purchasing contracts.

Path to Define Purchase Organization:

T Code	OX08
Path	IMG⇒ Enterprise Structure ⇒ Definition⇒ Material Management  ⇒ Maintain Purchase organization

 

Purchase Group:

• A purchasing group is the key for a buyer or group of buyers responsible for certain purchasing activities.

Path to Define Purchase Group:

T Code	SPRO
Path	IMG⇒ Material Management ⇒Purchasing  ⇒ Purchase Group

Assignments: 

Assign Company Code to Company

T Code	SPRO
Path	IMG⇒ Enterprise Structure ⇒ Assignment ⇒ Financial Accounting ⇒ Assign Company code to Company

Assign Plant to Company Code

In the IMG activity "Assignment Plant - Company Code" you assign each plant to a company code. A plant can only belong to one company code

T Code	OX18
Path	IMG⇒ Enterprise Structure ⇒ Assignment ⇒ Logistics General ⇒ Assign Plant to Company Code

Assign Purchase Organization to Company Code

You can assign a purchasing organization to one company code. This is company-specific purchasing.

T Code	OX01
Path	IMG⇒ Enterprise Structure ⇒ Assignment ⇒ Material Management⇒ Assign Purchase Organization to Company Code

 

Assign Purchase Organization to Plant

Assignment of purchasing organizations to the plants, for which they are responsible, so that One purchasing organization procures for several plants. Plant specific purchase org: one purchase org is responsible for one plant ( plant is assigned to only one purchase org). Central purchase org: one purchase org is assigned to more than one plant ( for plant more than one purchase org are assigned).

T Code	OX17
Path	IMG⇒ Enterprise Structure ⇒ Assignment ⇒ Material Management⇒ Assign Purchase Organization to Plant

Assign Standard Purchase organization to Plant

If several purchasing organizations procure for a certain plant, you can define one of them as the standard purchasing organization for the transactions "pipeline procurement", "consignment" and "stock transfers". In source determination for stock transfers and consignment, the system automatically utilizes this standard purchasing organization. In the case of goods issues of pipeline materials, the purchasing info records of the standard purchasing organization are read.

T Code	SPRO
Path	IMG⇒ Enterprise Structure ⇒ Assignment ⇒ Material Management⇒ Assign standard Purchase Organization to Plant