8/15/2016

SAPMMEnterpriseStructure
We are hiring

SAPMMEnterpriseStructure
Advertisements

PreviousPage

NextPage

Everyorganizationhassomeframeworkorsomestructureisdefinedaccordingtowhichthewholebusinessruns.Enterprisestructureis
thestructurethatrepresentsanenterpriseinSAPERPsystem.Itissubdividedintovariousorganizationalunitswhichforlegalreasonor
businessrelatedreasonaregroupedtogether.
Enterprisestructuredefinesvariouslevelsinanorganization.Theselevelsareplacedaccordingtosomehierarchy.Eachlevelhassome
specific functionality associated with it, which in a combined way describes the working of an organization. Also enterprise structure
defines various organizational units that are present in an enterprise. The Organizational Structure in MM consists of following
OrganizationalLevels:
Client
CompanyCode
Plant
StorageLocation
PurchasingOrganization
PurchasingGroup
Following diagram is one such organizational structure which describes the levels incorporated in an organization. Client being at the
topmost, followed by multiple company code, followed by multiple plants, plants having multiple storage location with their own or
centralizedpurchasingorganizations.

Client
ThefundamentalexplanationofClientisasfollows:
ClientisacommercialorganizationalunitinR/3system.
Ithasitsownsetofmasterdatawithindependenttablesets.
Accordingtohierarchy,ClientisathighestlevelinSAPsystem.
Datathatismaintainedatclientlevelisvalidforallorganizationallevels.

CompanyCode
ThefundamentalexplanationofCompanyCodeisasfollows:
WithinClient,Companycodeistheindependentaccountingunit.

http://www.tutorialspoint.com/sap_mm/sap_mm_enterprise_structure.htm

1/3

8/15/2016

SAPMMEnterpriseStructure
Itisalegalentitythathasitsownprofit,lossandbalancestatement.
Itisthesmallestunitinorganizationforwhichacompleteindependentaccountsetcanbereplicated.

Plant
ThefundamentalexplanationofPlantisasfollows:
Plantisanorganizationalunitwithinacompanywhereactivitiestakeplace.Aplantwillproducegoodsandmakesgoodsavailable
forthecompany.
It is unit having manufacturing facility, warehouse distribution center or a regional sales office within logistic. It subdivides an
enterpriseindifferentaspects.

StorageLocation
ThefundamentalexplanationofStorageLocationisasfollows:
StoragelocationisanorganizationalunitwhichactuallydifferentiatesbetweendifferentmaterialstocksinaPlant.
Storagelocationisaplacewherestockiskeptphysically.
Plantcanbeconsistingofmultiplestoragelocation.Alldataisstoredatstoragelocationlevelforaparticularstoragelocation.

PurchasingOrganization
ThefundamentalexplanationofPurchasingOrganizationisasfollows:
PurchasingOrganizationisanorganizationalunitundercompanyorplantwhichisresponsibleforprocurementactivitiesaccording
torequirements.ItisresponsibleforexternalProcurement.
Purchasingorganizationcanbeatclientleveli.e.centralizedpurchasingorganization.
Purchasingorganizationcanbeatcompanyorplantleveli.e.companyspecificorplantspecific
Differentformsofpurchasingcanbedescribedasfollows:

CentralizedPurchasing
Purchasingorganizationisnotassignedtoanycompanycodeitprocuresforallcompanycodesbelongingtodifferentclient.

CompanyspecificPurchasing
Purchasingorganizationisassignedtoacompanycodeonly,PlantbelongingtothecompanycodecanpurchasethroughthisPurchasing
organization.

PlantspecificPurchasing
PurchasingorganizationisassignedtoaPlant,onlythisspecificPlantcanpurchasethroughthisPurchasingorganization.

PurchasingGroup
ThefundamentalexplanationofPurchasingGroupisasfollows:
Purchasinggroupisanorganizationalunitwhichisresponsibleforeverydayprocurementactivitieswithinanorganization.
Itisabuyerorgroupofbuyerresponsibleforprocurementactivitiesinapurchasingorganization.

PreviousPage

NextPage
Advertisements

http://www.tutorialspoint.com/sap_mm/sap_mm_enterprise_structure.htm

2/3

8/15/2016

SAPMMEnterpriseStructure

PURCHASING SOFTWARE - TEST NOW

30 DAYS FOR FREE

negpoint.com

eAuction and eSourcing Software from 224,10

Write for us

FAQ's

Helping

Contact

Copyright 2016. All Rights Reserved.

Enter email for newsletter

http://www.tutorialspoint.com/sap_mm/sap_mm_enterprise_structure.htm

go

3/3