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Enterprise Structure - Plant

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Plant

The basic points to be noted about a plant are as follows:


Plant is an organizational unit within a company where activities take place. A plant will
produce goods and make goods available for the company.

It is a unit having manufacturing facility, warehouse distribution center, or a regional


sales office within logistic. It subdivides an enterprise in different aspects.

Storage Location
A storage location has the following attributes:
Storage location is an organizational unit, which actually differentiates between
different material stocks in a plant.

Storage location is a place where stock is kept physically.

A plant can consist of multiple storage locations. All data is stored at storage location
level for a particular storage location.

Purchasing Organization
The points to be noted about a Purchasing Organization are as follows:
A purchasing organization is an organizational unit under a company or a plant that is
responsible for the procurement activities according to requirements. It is responsible for
external procurement.

A purchasing organization can be at the client level, which is known as a centralized


purchasing organization.

A purchasing organization can also be at the company or plant level, which is known as
company-specific or plant-specific purchasing organization.

Different forms of purchasing can be described as follows:


Centralized Purchasing
Purchasing organization is not assigned to any company code. It procures for all company
codes belonging to different client.
Company-Specific Purchasing
Purchasing organization is assigned to a company code only. The plant belonging to the
company code can purchase through this purchasing organization.

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