of 17
7/31/2019 4.1 Enterprise Structure
1/17
Enterprise Structure
7/31/2019 4.1 Enterprise Structure
2/17
Storage Location
Company
Company Code
PlantPurchaseOrganization
Storage Location
Controlling Area
Enterprise Structure
Plants must always be consecutively numbered for all company codes. Consequently, plants assigned todifferent company codes cannot have the same number. However, the numbers of storage locations canbe repeated, as long as they are assigned to different plants
MM Organization Level:
Purchase Organization,
Storage Location
The client is the top level of theorganizational level. Severalcompany codes can be assigned toone client. In turn, several plants
can be assigned to a companycode, and several storage locationsassigned to a plant.
7/31/2019 4.1 Enterprise Structure
3/17
Definition:Organizational Levels:The structure of an enterprise is represented in the SAP R/3 System by the followingorganizational levels:
ClientA grouping or combination of legal, organizational, business and/or administrative units with acommon purpose.Example: a corporate group.General material data applicable to the entire company is stored at client level. This includes, forexample, the material group, base unit of measure, material descriptions, and conversion factorsfor alternative units of measure.
Company codeThis level represents an independent accounting unit within a client. Each company code has itsown balance sheet and its own profit and loss statement.Example: a subsidiary company, member of a corporate group.All data that is valid for a particular company code, as well as for the plants and storage
locations assigned to it, is stored at company code level. This includes, for example, accountingdata and costing data if valuation is at company code level.During Goods Movement , the system automatically updates the following data each time,Quantity and value for Inventory Management, Account assignment for cost accounting andG/L accounts for financial accounting via automatic account assignmentThe valuation area is the organizational level at which a material's stock value is managed. Thevaluation area can be plant level or company code level.
7/31/2019 4.1 Enterprise Structure
4/17
Plant
Operational unit within a company code. An organizational unit serving to subdivide anenterprise according to production, procurement, maintenance, and materials planning
aspects. It is a place where either materials are produced or goods and services provided.Example: Manufacturing Plant, Planning Plant, Export Plant, Depot.
All data that is valid for a particular plant, as well as for the storage locations belonging to it, isstored at plant level. This includes, for example, MRP data and forecast data.We can run MRP at Plant level. The quantity will update at plant level as well as company codelevel
Purchasing organization
An organizational unit responsible for procuring materials or services for one ormore plants and for negotiating general conditions of purchase with vendors. Thepurchasing organization assumes legal responsibility for all external purchasetransactions.
Purchasing group
The purchasing organization is further subdivided into purchasing groups (buyergroups), which are responsible for day-to-day buying activities.A purchasing group can also act for several purchasing organizations.
7/31/2019 4.1 Enterprise Structure
5/17
PlantIMG-Enterprise Structure-Definition-Logistic General-define copy delete Check Plant(OX10)Copy delete check Plant
Click on copy
Copy from plant ****
To plant ****
7/31/2019 4.1 Enterprise Structure
6/17
Define Plant
Select Plant and click on address icon and enter address details. + save.
7/31/2019 4.1 Enterprise Structure
7/17
Definition:
An organizational unit responsible for procuring materials or services for one or moreplants and for negotiating general conditions of purchase with vendors. The purchasingorganization assumes legal responsibility for all external purchase transactions
The following forms of purchasing exist:
A: Corporate-group-wide
A purchasing organization procures for all the company codes belonging to a client.
B: Company-specificA purchasing organization procures for just one company code.
C: Plant-specific
A purchasing organization procures for a plant.
Purchase Organization
7/31/2019 4.1 Enterprise Structure
8/17
Centralized Purchasing
Corporate wide GroupPurchasing
Purchase Organization
Plant-A Plant-B
Company Code-X
Plant-C Plant-D
Company Code-Y
One PurchaseOrganization is
Responsible fornumber of DifferentCompany
Code
Purchasing organization company code A purchasing organization can (but need not) be assigned to a companycode.If you do not assign a company code to a purchasing organization, thelatter can engage in procurement operations for every company code. Aprerequisite for this is that the plant for which procurement is carried out isassigned to the purchasing organization.
7/31/2019 4.1 Enterprise Structure
9/17
Company Code Specific
Purchase Organization
Purchase Organization
Plant-A Plant-B
Company Code-X
Plant-C Plant-D
Company Code-Y
Purchase Organization
One Purchase Organization Responsible for one Company Code
Plant - purchasingorganization/company code
In the SAP system, a plantmust be assigned to one ormore purchasingorganizations.Furthermore, a plant mustalways be assigned to acompany code.
7/31/2019 4.1 Enterprise Structure
10/17
Plant Specific
Purchase Organization
Purchase Organization
Plant-B
One Purchase Organization Responsible for one Plant
The form of procurement is defined by the assignment of purchasing organizations to company codesand plants.
7/31/2019 4.1 Enterprise Structure
11/17
Define Purchase Organization:IMG-Enterprise Structure-Definition-Material Management-Maintain Purchase
Organization(OX08).
New entry
Enter Purchase Organization-Code and Description of Purchase Organization + save.
7/31/2019 4.1 Enterprise Structure
12/17
Storage Location
7/31/2019 4.1 Enterprise Structure
13/17
Storage Location
IMG-Enterprise Structure-Definition-Material Management-Maintain Storage LocationOX09)
Enter Plant
New Entry
An organizational unit allowing the differentiation of material stocks within a plant. All data referring to aparticular storage location is stored at storage location level. This applies mainly to storage locationstocks
7/31/2019 4.1 Enterprise Structure
14/17
Storage Location
Storage Location is the Level at which a plants actual stocks of material are kept.
Stocks are managed at storage location on quantity basis-not on value basis.
A storage location is always defined as belonging to certain a plants
Enter Storage Location and Description + save.
7/31/2019 4.1 Enterprise Structure
15/17
AssignmentTo transfer data between the individual components, you have to assign the organizational units to eachother. You only need to make these assignments once in the system. Whenever you enter data
subsequently, it is automatically transferred .
Assign Plant to CompanyCode .IMG-Enterprise Structure-
Assignment-Logistic General-assign Plant to Companycode(OX18)
Select company code,
Click on assign,
Select Plant
Press enter
Save.
7/31/2019 4.1 Enterprise Structure
16/17
Assign Purchase Organization to Company code IMG-Enterprise Structure-Assignment-Material Management-assign Purchase Organization to Company
Code(OX01)
Select company code , click on assign and select purchase organization.
Press enter and Save.
A i P h O i i Pl
7/31/2019 4.1 Enterprise Structure
17/17
Assign Purchase Organization to Plant
IMG-Enterprise Structure-Assignment-Material Management-assign Purchase Organization to CompanyCode(OX17)
The form of procurement is defined by the assignment ofpurchasing organizations to company codes and plants.
Select Purchase Organization, click on assign, select Plant, press enter and save.
