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02 Organizational Structure MM

The document discusses the organizational structure in SAP MM, including: 1) It describes the key entities in the organizational structure like client, company, company code, plant, storage location, purchasing organization, and purchasing group. 2) It provides an overview of how to define each entity and assign relationships between them, such as assigning a company code to a company or a purchasing organization to a plant. 3) It mentions the different types of purchasing organizations that can be used like centralized, plant-specific, or cross plant.

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Vijay Patole
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33 views15 pages

02 Organizational Structure MM

The document discusses the organizational structure in SAP MM, including: 1) It describes the key entities in the organizational structure like client, company, company code, plant, storage location, purchasing organization, and purchasing group. 2) It provides an overview of how to define each entity and assign relationships between them, such as assigning a company code to a company or a purchasing organization to a plant. 3) It mentions the different types of purchasing organizations that can be used like centralized, plant-specific, or cross plant.

Uploaded by

Vijay Patole
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SAP MM

ORGANIZATION STRUCTURE

SAPGuru99
ORGANIZATIONAL STRUCTURE
• EVERY ORGANIZATION HAS SOME STRUCTURE ACCORDING TO WHICH
THE WHOLE BUSINESS RUNS.
• AN ENTERPRISE STRUCTURE IS A STRUCTURE THAT REPRESENTS AN
ENTERPRISE IN THE SAP ERP SYSTEM.
 CLIENT
 COMPANY
 COMPANY CODE
 PLANT
 STORAGE LOCATION
 PURCHASING ORGANIZATION
 PURCHASING GROUP
CLIENT

• A client is an entity with independent information and data in the SAP


landscape.

• Types of Clients
 Development – Customization
 Quality-Testing
 Production – End User
DEFINE COMPANY

• Created to get the book-keeping records of profit and loss.


E.g. TATA Group, Mahindra & Mahindra.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Financial


Accounting - Define company

T Code: OX15
DEFINE COMPANY
CODE
• To create a financial statement of an individual.
E.g. TATA Steel, TATA Motors, TCS.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Financial


Accounting - Edit, Copy, Delete, Check Company Code

T Code: OX02
DEFINE PLANT

• Plants are operational facilities within a company. (production facility,


Warehouse)

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Logistics –


General - Define, copy, delete, check plant

T Code: OX10
STORAGE
LOCATION
• A storage location is a place where stock is kept physically.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Materials


Management - Maintain storage location

T Code: OX09

• We create a storage location w.r.t plant so no need to assign.


PURCHASING ORGANIZATION

• It is an organization that is responsible to procure material or services.

• Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Materials


Management - Maintain purchasing organization

• T Code: OX08
PURCHASING GROUPS

• It is a group of buyers or people who are responsible to procure materials or


services.
• The purchasing group is a free entity that is defined in the org but not
assigned to any level of the org. structure.

Path: SPRO – SAP Ref IMG - Materials Management – Purchasing - Create


Purchasing Groups

T Code: OME4
ASSIGN COMPANY CODE TO
COMPANY
• We can assign multiple Company Codes to Company.
• But we can assign only one company to the company code.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Assignment - Financial


Accounting - Assign company code to company

T Code: OX16
ASSIGN PLANT TO COMPANY CODE

• We can assign multiple plants to Company Code.


• But we can assign only one company code to the Plant.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Assignment - Logistics


– General - Assign plant to company code

T Code: OX18
TYPES OF PURCHASE ORGANIZATION

• Centralize Purchase Organization: It is assigned to the company code which


works for all plants of the company code.

• Plant Specific: It is assigned to a plant it works for the specific plant.

• Cross Plant: It is assigned to the different plants of different company codes.


ASSIGN PURCHASING
ORGANIZATION
• Assign purchasing organization to plant

• Path: SPRO – SAP Ref IMG - Enterprise Structure – Assignment - Materials


Management - Assign purchasing organization to plant

• T Code: OX17
Client

Company

Company Company Centralize P.


Code 1 Code 2 Purch Group
Org.

Plant Sp. Purch


Plant 1 Plant 2 Plant 3
P. Org. Group

Storage Storage
Location 1 Location 2
Cross Plant
Purch Group
P. Org.
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