Enterprise Structure – Definition (1-5)

Define Valuation Level - OX14

Define Plant- OX10
Maintain Storage Location- OX09
Maintain purchasing organization- OX08
Enterprise Structure - Definition
Define Valuation Level
Menu path: Implementation Guide for R/3 Customizing (IMG) 
Enterprise Structure  Definition  Logistics
general  Define Valuation Level
T-Code: OX14
Description: Here we specify the level at which material stocks
are valuated. We have used the Plant level since the application
components Production Planning (PP) and Costing are being used.
 Depending on the valuation level chosen, accounting data (in
particular the valuation price) is maintained for each plant or each
company code in the material master record.
 If material stocks are valuated at the company code level, all plant
stocks of a material are managed in a joint stock account for each
company code.
 If material stocks are valuated at the plant level, the material stocks
for each plant can be managed in different accounts. We can define
a separate account determination for each plant.
Enterprise Structure - Definition
Define Plant
Menu path:
Implementation Guide for R/3
Customizing (IMG)  Enterprise
Structure  Definition  Logistics
general  Define, copy, delete,
check plant
T-Code: OX10
Description: As a part of the Logistics
Organizational Structure, Plants are
defined in SAP. The ‘Plant’ is an
operating area a branch or a location
within a company. Each 'Plant' is
assigned to a single 'company code'. A
'company code' can have several
'Plants'. In the case of ITZ Pvt. Ltd., the
various 'Plants' are assigned to each
'company code'.
Configuration of One Plant is depicted
here, (for list of all please refer to MM
KDS Document)
Enterprise Structure - Definition
Maintain Storage Location
Menu path Implementation Guide for R/3 Customizing
(IMG)  Enterprise Structure  Definition
 Materials Management  Maintain
Storage Location
Transaction Code: OX09
Description: A storage location is the place where stock is physically
kept within a plant. There may be one or more storage locations
within a plant.

A storage location has the following attributes:

 A storage location has a description and at least one address.

 It is possible to store material data specific to a storage location.
 Stocks are managed only on a quantity basis and not on a value
basis at the storage location level.
 Physical inventories are carried out at the storage location level.

Configuration of Storage Locations under One Plant is depicted here,

(for list of all please refer to MM KDS Document)
Maintain purchasing organization
Definition: An organizational unit subdividing an enterprise according to the requirements of Purchasing. It
procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such
transactions.
Menu path Implementation Guide for R/3 Customizing (IMG) 
Enterprise Structure  Definition  Materials
Management  Maintain Purchasing Organization
T-Code: OX08

Structure:
The form of procurement is defined by the assignment of purchasing
organizations to company codes and plants.
The following forms of purchasing exist:
•Corporate-group-wide
A purchasing organization procures for all the company codes belonging to a
client.
•Company-specific
A purchasing organization procures for just one company code.
•Plant-specific
A purchasing organization procures for a plant.
Mixed forms are possible, which can be replicated in the system by the use of
reference purchasing organizations.
A purchasing organization can utilize the more favorable conditions and
contracts of the reference purchasing organization that has been assigned to it.
Integration
An example of corporate structure with purchasing organization is given in the
following graphic representation:
 Enterprise Structure Assignments (6-9)

Assign Plant to Company Code- OX18

Assign purchasing organization to company code- OX01
Assign purchasing organization to Plant- OX17
Enterprise Structure Assignments
Assign Plant to Company Code
Menu path Implementation Guide for R/3 Customizing (IMG) 
Enterprise Structure  Assignment  Logistics general 
Assign Plant to Company Code.
Transaction Code: OX18

Description: A Plant needs to be assigned to one of the

Company Codes, the relation is always one-to-one i.e.
One Plant can be assigned to only one company code
All the plants can’t be shown here(for a complete list
refer MM KDS document)
 Assign purchasing organization to company code
Menu path Implementation Guide for R/3 Customizing (IMG) 
Enterprise Structure  Assignment  Logistics general 
Assign purchasing organization to company code
T-Code: OX01

Structure:
The form of procurement is defined by the assignment of purchasing organizations to company codes and plants.
The following forms of purchasing exist:
•Corporate-group-wide
A purchasing organization procures for all the company codes belonging to a client.
•Company-specific
A purchasing organization procures for just one company code.
•Plant-specific
A purchasing organization procures for a plant.
Mixed forms are possible, which can be replicated in the system by the use of reference purchasing organizations.
A purchasing organization can utilize the more favorable conditions and contracts of the reference purchasing organization that has been assigned to it.
Integration
An example of corporate structure with purchasing organization is given in the following graphic representation:
 Assign purchasing organization to Plant

Menu path Implementation Guide for R/3

Customizing (IMG)  Enterprise
Structure  Assignment  Logistics
general  Assign purchasing
organization to Plant
T Code OX17
In this step we assign purchasing
Description organizations to the plants for which
they are responsible.
In case of ITZ since it operates with
Centralized Purchasing Org. we have
assigned the Purchasing Org. to all the
plants defined as of now
 General Logistics
Assign Fields to Fields Selection Groups-OMSR
Maintain Field Selection for Data Screens-OMS9
Maintain Company Codes for Materials Management-OMSY
Define Attributes of Material Types-OMS2
Define Number Ranges for each material types-MMNR
Define Attributes of system messages-OMT4
Define Material Groups-OMSF
Initialize Period-MMPI
General Logistics

Assign Fields to Fields Selection Groups

Menu path Implementation Guide for R/3 Customizing (IMG) 

Logistics - General  Material Master  Field
Selection Assign Fields to Fields Selection Groups
T-code: OMSR

Description: Assignment of Material Master Fields is required

to define whether a field is hidden or displayed, or whether an
entry is mandatory or optional in material master
maintenance, it is always advisable to work with Standard
SAP settings, but for few business requirement some
assignments are changed to new field selection groups
defined as per reserved name space. in case of ITZ, some of
the list of changed entries is as given below:
 1. Maintain Field Selection for Data Screens

Menu path Implementation Guide for R/3 Customizing (IMG)  Logistics -

General  Material Master  Field Selection Maintain Field
Selection for Data Screens

Transaction Code OMS9

In this step we define the nature of a Field belonging to a

Configuration particular Field Selection Group wrt the Screen Reference of a
Description Material Type. Steps involved are :
 Selecting the field selection group.
 Select the field selection option (hide, display, required entry,
or Optional entry) for each field reference as required.
 Maintain Company Codes for Materials Management

Menu path: Implementation Guide for R/3 Customizing (IMG)  Logistics - General 
Material Master  Basic Settings Maintain Company Codes for Materials
Management
T-Code: OMSY

This activity is done for making a Company

Description Code relevant for materials Management
and to define the starting posting period
This is a prerequisite for creating a Material
Master
1. Define Attributes of Material Types

Menu path Implementation Guide for R/3 Customizing (IMG) 

Logistics - General  Material Master  Basic Settings
Material Types Define Attributes of Material Types
T-code: OMS2

Configuration Description:Material type is analogous to the

family of a material master; all the important attributes of a
material are governed by settings in the material type. To be
precise it governs :
1. Number range pattern and nature (external/internal)
2. Hide/optional fields in the material master
3. Valuation Control at valuation area level (ultimately used to
derive G/L)
4. Control on Production/Purchase