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    Enterprise Structure

    Uploaded by

    Vaibhav Kathar
    The document defines and describes the key organizational units in SAP such as client, company, company code, plant, storage location, purchasing organization, and controlling area. It explains that a company can have one or more company codes, each with their own balance sheet and P&L. A company code must be assigned to a plant, which is an operational unit where materials are produced. Inventory is managed and physical inventories are carried out at the level of storage locations within a plant. A purchasing organization procures materials and services and can be assigned to one or more company codes or plants.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd

    Enterprise Structure

    Uploaded by

    Vaibhav Kathar
    26 views5 pages
    The document defines and describes the key organizational units in SAP such as client, company, company code, plant, storage location, purchasing organization, and controlling area. It explains that a company can have one or more company codes, each with their own balance sheet and P&L. A company code must be assigned to a plant, which is an operational unit where materials are produced. Inventory is managed and physical inventories are carried out at the level of storage locations within a plant. A purchasing organization procures materials and services and can be assigned to one or more company codes or plants.

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    The document defines and describes the key organizational units in SAP such as client, company, company code, plant, storage location, purchasing organization, and controlling area. It explains that a company can have one or more company codes, each with their own balance sheet and P&L. A company code must be assigned to a plant, which is an operational unit where materials are produced. Inventory is managed and physical inventories are carried out at the level of storage locations within a plant. A purchasing organization procures materials and services and can be assigned to one or more company codes or plants.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    26 views5 pages

    Enterprise Structure

    Uploaded by

    Vaibhav Kathar
    The document defines and describes the key organizational units in SAP such as client, company, company code, plant, storage location, purchasing organization, and controlling area. It explains that a company can have one or more company codes, each with their own balance sheet and P&L. A company code must be assigned to a plant, which is an operational unit where materials are produced. Inventory is managed and physical inventories are carried out at the level of storage locations within a plant. A purchasing organization procures materials and services and can be assigned to one or more company codes or plants.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    of 5

    Enterprise Structure

    ---------------------

    Client/Company:
    ----------------
    •It is an Organizational Unit for which financial statements can be drawn up
    according to relevant

    commercial law.

    •The client/company is a commercial,organizational unit within the R/3


    system,with its own data,master

    records,and set of tables.From a business perspective,the client forms a


    corporate group.

    •Note: A Company can have one or more company codes.

    Customization Step:
    -------------------
    SPRO -> Enterprise Structure -> Definition -> Financial Accounting ->Define
    company

    Tcode--OX15

    -----------------------------------------------------------------------------
    ---------------------------
    Define Company Code
    -------------------
    Company code:
    -------------
    • The company code is the smallest organizational unit, for which you can
    have an independent accounting

    department.

    • It is a smallest Organizational Unit

    • Each company code has its own Balance sheet and P&L Account.

    • Company Code is subsidiary of Company or a member of a corporate Group

    Customization Step:
    -------------------

    Define company code Tcode--OX02

    SPRO -> Enterprise Structure -> Definition ->Financial Accounting -> Edit,
    Copy,

    Delete, Check Company Code Tcode--EC01 ---Copy data from 1000 default
    company code to your com.code.

    -----------------------------------------------------------------------------
    ----------------------------
    Controlling Area:
    -----------------
    • It is an Organizational Unit with in a company where costs and revenues are
    counted.

    • It represents a closed system for the accounting purpose.

    • Controlling area may be assigned to one or more company codes, but company
    code

    must use the same operative Chart of Account.

    Customization Step:
    SPRO -> Enterprise Structure -> Definition ->Controlling -> Maintain
    Controlling Area
    Tcode--OX06
    -----------------------------------------------------------------------------
    -----------------------------
    Define Plant
    -------------
    A plant is an organizational logistics operational unit that structures the
    enterprise from the

    perspective of production,procurement,plant maintainance, and materials


    planning.A plant is a

    manufacturing facility or branch within a company.

    • It is an Operational Unit with in a company code.

    • It is a place where materials are produced or Materials/Goods/Services are


    provided.

    • A Plant can be having

    - Manufacturing facility - Regional Sales Office

    - Central Delivery warehouse - Corporate HQ - Maintainance Plant

    Tcode---OX10
    -----------------------------------------------------------------------------
    --------------------

    Note: A Plant must always be assigned to a company code.

    Valuation Area:
    ---------------
    • It is an organizational level at which material is valuated.

    • Plant and company codes are two possible valuation areas in the R/3 System.

    • Important Note: Defining the valuation level in Customizing is a


    fundamental

    setting, and is very difficult to reverse.

    valuation-area Customization Steps:

    1. Enterprise Structure -> Definition -> Logistic-General -> Define valuation


    level
    Valuation Level--Tcode-OX14
    ---------------------------
    You define the valuation level by specifying the level at which material
    stocks are

    valuated

    You can valuate material stocks at the following levels:

    -Plant level
    ------------
    Note: Valuation must be at this level in the following cases

    If you want to use the application component Production Planning (PP) or


    Costing or If your system is a

    SAP Retail system

    -Company code level


    -------------------
    Note: SAP recommends setting material valuation at plant level.

    2. Enterprise Structure ->Definition ->Logistic-General-> Define, copy,


    delete, check

    plant (EC02/OX10)
    -----------------------------------------------------------------------------
    -----------------------

    Define Storage Location


    ------------------------
    The Storage location is an organizational unit that allows the differentiation of
    material stocks within a plant.
    Inventory Management on a quantity basis is carried out at storage location in the
    plant.
    Physical inventory is carried out at storage location level.
    Storage Location:
    -----------------
    • It is an Organizational unit, which allows the differentiation of Material Stock
    with in

    a Plant. It holds the Goods/materials.

    • Under the plant there may be different storage locations. However the storage

    location of one plant cannot be used for the other plant.

    • Storage locations are not assigned to the plants seperately, because at the time
    of

    creation it self we create storage location with respect to plant.

    Tcode--OX09
    -----------------------------------------------------------------------------------
    ---------------
    Interview Question--Where is the physical inventory carried out?
    ------------------
    Ans---Physical inventory is carried out at storage location level.
    -----------------------------------------------------------------------------------
    ---------------

    Customization Steps:

    SPRO->Enterprise Structure-> Definition ->Material Management-> Maintain storage

    location (OX09)
    -----------------------------------------------------------------------------------
    ------------------------
    Define Purchasing Organization Tcode--OX08
    -------------------------------
    A purchasing Organization is an organization level that negotiates conditions of
    purchase with vendors.
    It is legally responsible for completing purchasing contracts.
    A purchasing group is the key for a buyer or group of buyers responsible for
    certain purchasing activities.
    Purchasing Organization:
    ------------------------
    It procures the material and services.
    It negotiates conditions of purchase with the vendors.
    It is responsible for completing the procurement contracts
    Purchasing organization types:
    ------------------------------
    1. Centralized Purchasing--One purchasing organisation is responsible for different
    company codes
    -------------------------
    2. Distributed Purchasing--One purchasing organisation is responsible for one plant
    --------------------------
    3.Company specific purchasing--One purchasing organisation is responsible for one
    company code.
    ------------------------------
    4.Reference Purchasing Organisation--A purchasing organisation whose conditions and
    contracts other purchasing
    -----------------------------------
    organisation linked to it may access and use.

    5.Standard Purchasing Organisation--If a several purchasing organisations procure


    for one plant you can
    ----------------------------------
    define one of them as a standard purchasing organisation.
    --Standara Purchase Organization we use for special procurements like
    Pipeline,Sub-Contracting,Consignment etc.

    So a Purchasing Organization Can be assigned to

    - Several company Codes.

    - One Company code

    - One or More Plants

    Note:

    - Purchasing Organization can also exist with out assigning to a company code.
    -Own Vendor master Data.

    Customization Steps:
    ---------------------
    SPRO ->Enterprise Structure->Definition-> Material Management ->Maintain

    purchasing organization (SPRO)


    -----------------------------------------------------------------------------------
    -------------------------

    Assigning of Organizational Units


    Customization Steps:

    SPRO -> Enterprise Structure ->Assignment -> Financial Accounting -> Assign company

    code to company (SPRO) Tcode OX16

    SPRO ->Enterprise Structure -> Assignment ->Controlling ->Assign company code to

    controlling area (OX19)

    SPRO-> Enterprise Structure -> Assignment -> Logistic-General ->Assign plant to

    company code (OX18)

    SPRO ->Enterprise Structure -> Assignment ->Material Management->Assign purchasing

    organization to co-code (SPRO) Tcode OX17

    SPRO-> Enterprise Structure -> Assignment -> Material Management -> Assign
    purchasing

    organization to plant (SPRO)---OX01

    SPRO-> Enterprise Structure -> Assignment -> Material Management -> Assign Standard
    purchasing

    organization to plant (SPRO)

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