Topic

Defination A company that purchase SAP software will install it on SAP server which is then configured on for its specific need. This is called an instance. Companies can have more then one SAP Instance, but they will exist on different SAP system. With In one SAP instance, a number of clients will be created. We define a Client as an organizational and legal entity in SAP system. The master Data is protected with in the client as it can not be accessed SAP defines a company and company code seperately. SAP defines a company as the smallest organizationl unit for which legal finance statements can be prepared. A company. A company can contain one or more company codes but they must use the same chart of accounts and same fiscal year break down.

Client

Company

Company Code

SAP defines a company code as the smallest organization unit which a complete self contained set of accounts can be drawn up. You will be able provide data for generating balance sheet & profit & Loss statements. The company code will represent legally independent companies. using more than company code allows a customer to manage financial data for different independent companies at the same time Once a company code has been defined it must be assigned to a number of objects. In the IMG there are number of Financial Configuration steps that need to be carried out. The company code can be assigned to the following: *Credit Control Area *Financial Management Area *Company The defination of Plant is depend on it use. From a material management view a plant can be defined as a location that holds valuated stock. A Production Planing view defines a plant as an organizational unit that is center to production planning. A plant also can be defined as a location that contains service or maintenance facilities **Prerequisites for a plant *Factory Calendar *Contry Key *Region Key

Assigning Company Code

Plant

Valuation Level

The valuation Level is an Important Configuration step because it specifies the level at which material stocks are valuated for the whole client. There are two opetion for the valuation level: Plant level or Company Code Level. Storage location is a place where stock is physically kept with in a plant. There will always be at least one storage locaion defined for one plant. It is the lowest level of location defined with in a material management module Once a Valuation level has been established it is possible to assign a plant to an company code. This assignment is performed so that all plant transactions can be attributed to a single legal entity; that is a company code It is possible to create storage locations automatically when an inward goods movement for a material is performed. The configuration need the plant and/or the type of movement to be defined to allow the automatic creation of storagelocation. The automatic storagelocation will only be activated is the movement is for normal stock, not special stock A where house is a Physical location that contains defined areas that are called storage type and these are then further divided into smaller locations called storage bins. The warehouse is linked to the MM module by assigning warehouse to the storagelocation in mm and if a company has WM and MM activated, the goods movement will require knowlege of the major elements of WM

Storage Location

Assigning Plant

Automatic creation of Storage locations

Warehouse and storage types

The way to ensure that the SAP identifies that certain Storage locations are controlled by the functionality in Assigning a warehouse to Plant and storage location warehouse management is to assign a ware house to a storage location. A storage type is defined as an area of the warehouse that is a sub section containing a number of storage bins. The storage type is available to the warehouse user for creating searches based on storage types. Common storage type in a warehouse will be area such as cold room, bulk storage, and high rack area. storage type pre defined by SAP are called interim storage type. these are defined numerically from 900 to 999. the areas are used by SAP for movement posting such as goods receipt, goods issue and posting difference.

Storage Type

Storage Section

a subdivision of the storage type is storage section. This is simply a group of similar storage bins even if the customer does not want to define storage section, one storage section must be define per storage type. This is normally defined as 001. A Pucrhasing organiztion is simply defined as a group of purchasing activity that is associated with all or a specific part of the enterprise Purchasing for SAP customer may take place at the highest level with in an organization. If a customer has central purchasing dept. that co-ordinate purchasing for all companies with in the enterprise then the purchasing organization can be configured in that manner. The purchasing organization is defined in sap and then assigned to all companies. If a SAP customer does not have a single enterprise wide purchasing function it may have purchasing centralized for each company. This may be appropriate for customer with companies in various countries in which case an enterprise purchasing department not possible. in this scenario a purchasing organization is created and assigned for each company code. even with the scenario a purchasing organization may cover several companies. In an Enterprise that has Companies with larg autonomus plant the purchasing decisions may be at a local level. The SAP customer may decide that assigning one purchasing organization to one company is not appropriate, and it would be a better decision to assign a purchasing organization at the plant. this scenario has an advantage when the vendors are at a local level and few vendors supply material or services to more then one plant.

Purchasing Organization

Purchasing at an enterprise level

Purchasing at an Company level

Purchasing at an Plant level

Reference Purchasing Organization

Create a purchasing Organization

Tcode

Path

OX15

SPRO->IMG->Enterprise Structure->Defination>Financial Accounting->Define Company.

SPRO->IMG->Enterprise Structure->DefinationOX02 >Financial Accounting->Edit. Copy, delete Check company code

OX10

SPRO->IMG->Enterprise Structure->Defination-> Logistic General->Define. Copy, delete Check Plant.

OX14

SPRO->IMG->Enterprise Structure->Defination-> Logistic General->Define. Valuation level

OX09

SPRO->IMG->Enterprise Structure->Defination-> Material Management->Maintain Storage location

OX18

SPRO->IMG->Enterprise Structure->Defination-> Logistic General->Assign Plant to Company code

SPRO->IMG->Material Management-> Inventory OMB3 Management and Physical Inventory-> Goods Receipt>Create Storage location Automatically

SPRO->IMG->Enterprise Structure->Defination-> Logistic Execution-> Define. Copy delete check Wherehouse Number

SPRO->IMG->Enterprise Structure-> Assignment-> Logistic Execution-> Assign Wherehouse Number to plant/storage location

SPRO->IMG-> Logistics Execution-> Warehouse management-> Master Data->Define Storage tpye

SPRO->IMG-> Logistics Execution-> Warehouse management-> Master Data->Define Storage sections

SPRO->IMG->Enterprise Structure-> Assignment-> OX01 Material Management -> Assign Purchasing organization to Company Code

SPRO->IMG->Enterprise Structure-> Assignment-> OX17 Material Management -> Assign Purchasing organization to Plant

SPRO->IMG->Enterprise Structure-> Assignment-> Material Management -> Assign Purchasing organization to Reference purchasing organization SPRO->IMG->Enterprise Structure->Defination-> Material Management ->Maintain purchasing Organization