Enterprise/Organization Structure in SAP MM (S4 Hana / ECC)

Every organization has some framework or structure according to which the whole
business runs. An enterprise structure is the structure that represents an enterprise in the
SAP ERP system. It is subdivided into various organizational units which, for legal reasons or
business-related reasons, are grouped together.
An enterprise structure defines various levels in an organization. These levels are placed
according to some hierarchy. Each level has some specific functionality associated with it,
which in a combined way describes the working of an organization. In addition, an
enterprise structure defines various organizational units that are present in an enterprise.
The organizational structure in MM consists of the following organizational levels −

 Client
 Company Code
 Plant
 Storage Location
 Purchasing Organization
 Purchasing Group

Fig. No: -1 Basic Enterprise Structure

Client: -
It has its own set of master data with independent table sets. According to hierarchy, a
client occupies the highest level in a SAP system. Data that is maintained at the client level
is valid for all organizational levels.

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Company Code: -
Within client, a company code is an independent accounting unit. It is a legal entity that
has its own profit, loss and balance statement. It is the smallest unit in an organization for
which a complete independent account set can be replicated.

Plant: -
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 centre, or a regional sales office within logistic. It subdivides
an enterprise in different aspects.

Storage Location: -
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: -
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.
Below are the different types of Purchase Organization: −
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.
Plant Specific Purchasing: -
Purchasing organization is assigned to a plant. Only this specific plant can purchase through
this purchasing organization.

Purchasing Group: -
Purchasing group is an organizational unit responsible for the everyday procurement
activities within an organization. It is a buyer or a group of buyers responsible for the
procurement activities in a purchasing organization.

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Step by Step Procedure of Creating Enterprise/Organization Structure.
 Just Log On SAP Screen (S/4 Hana)

 Enter the T-Code: - SPRO & Execute. Below screen opens.

 Click on SAP Reference IMG. SAP Customizing Implementation Guide Open as below.

 Here we have the option of Enterprise Structure. Double click on this below screen
opens.
  Here we have the option of Definition & Assignment.
 Under the Define Part We Can Define all the term like Plant, Storage Location,
Purchase Org., Purchase Group
 Under Assignment we can assign this all the term with each other.

# Definition Part of Enterprise Structure.

Step: - 1
1] Creation of Company
Path to Define Company: -
SPRO->IMG-> Enterprise Structure-> Definition-> Financial Accounting-> Define company
 Double click on this below screen opens.
  Click on New Entries or We also have the option of Copy from Existing One also.

 Enter all the required all details as per requirement here & save the data.

 As above shown New Company: - JDMS Created.

 Like this we can Create New Company.

2] Creation of Company Code: -

Path to Edit, Copy, Delete, Check Company Code: -
SPRO->IMG-> Enterprise Structure-> Definition-> Financial Accounting-> Edit, Copy, Delete,
Check Company Code
 By double click on this below screen opens.

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 Click on Copy, delete, check company code below screen opens.

 Click on Copy as above shown.

 Select the Company Code from list you want to make copy & Enter New Company
Code as per requirement here & Click on Tick.

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 Click on yes it will copy all the Data of that Company Code to Our Company Code.

 It will Copy all the data for our New Company Code.

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 Click on Tick mark.

 New Company Code: - JDMS Created.

 Now again take back.

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 Click on Edit Company Code Data

 Search your Company Code

 Click on Details View & Edit Mode.

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 Change Name as per requirement & Click on Address as shown above.

 As above shown do the changes as per requirement & Save the data.
 So like this we can Define Company Code
 Most of the time this will be done by only Finance Team. But just showing
purpose I shown you this here.

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3] Define Plant: -
Path to Define Plant: -
SPRO->IMG-> Enterprise Structure-> Definition-> Logistics – General -> Define, copy, delete,
check plant
 By double click on this below screen opens.

 By Click on Define Plant.

 Like this enter all the details we can create new plant here.
Or
 We have the another option of Copy, delete, check plant
 Most of the time for Practice we can use this option.

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 Click on Copy, delete, check plant below screen opens.

 Click on Copy as above shown.

 Select the Plant from which you need to copy plant from list & Enter the New Plant
name as per requirement.

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 Click on tick mark.

 It will copy all the data from this plant to our New Plant.

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 New Plant will be created as above shown.
 Take back

 Click on Define Plant. Go to your Plant. i.e. MMS1 in my case

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 Change the name of Plant as per requirement here.

 I have Change the Name of Plant as per my requirement & Save.

 Here also you can change the Address & All details as per requirement.

 Again I created Second Plant: - MMS2 by copying from Plant: - MMS1

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  Like this we have created two different plants here.

4] Maintain storage Location: -

Path to Maintain Storage Location: -
SPRO->IMG-> Enterprise Structure-> Definition-> Materials Management-> Maintain
storage location
 By Double click on this below screen opens.

 Enter Plant here & click on Tick Mark.

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 As we copied plant Storage Location also copied here. Delete if you not required this
select all & click on delete option.
 Click on New Entries enter New Store Location as per requirement.

 As above shown enter Storage Location name as per requirement. Save the data.
 Like this we can maintain Storage Location for both the Plant i.e. MMS1 & MMS2

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  For Plant: - MMS2 also I have maintained same Storage Location.

5] Maintain purchasing organization

Path to Maintain purchasing organization: -
SPRO->IMG-> Enterprise Structure-> Definition-> Materials Management-> Maintain
purchasing organization
 Double Click on this below screen opens.

 Click on New Entries.

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  Enter Purchase Org. as per requirement with Description here & Save the data.

 Purchase Organization Maintained as above shown.

Step: - 2
# Assignment Part of Enterprise Structure.
1] Assign Company Code to Company
Path to Assign company code to company: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Financial Accounting-> Assign company
code to company
 By Double click on this below screen opens.

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  Enter Company i.e. JDMS here & Save the Data.

2] Assign Plant to Company Code

Path to Assign Plant to Company Code: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Logistics - General-> Assign plant to
company code
 By Double click on this below screen opens.

 As while creating Plant we can copy it so this plant is already assign to previous
company code i.e. 0001
 So delete this Assignment & Again assign to our Company Code i.e. JDMS.
 Click on New Entries.

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  Enter Company Code & Both the Plant & Click on Save.

 Assignment of Plant & Company Code done as above shown.

3] Assign purchasing organization to company code

Path to Assign purchasing organization to company code: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Materials Management -> Assign
purchasing organization to company code
 By Double Click on this below screen opens.

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  Enter here Company Code in Front of Purchasing Organization as shown above &
Save the data.

 Assignment of Purchasing Organization to Company Code done.

4] Assign Purchasing Organization to Plant

Path to Assign purchasing organization to company code: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Materials Management -> Assign
purchasing organization to plant
 By Double click on this below screen opens.

 Click on New Entries.

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  Enter the Purchase Organization & Plant here & Click on Save.

5] Assign standard purchasing organization to plant

Path to Assign standard purchasing organization to plant: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Materials Management -> Assign
standard purchasing organization to plant
 By Double click on this below screen opens.

 Enter Purchase Organization for Plant here & Save the data.

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Assignment Part Completed here if we want to check the All Data or Check
Enterprise/organization Structure is Correctly assign or Not.
 For this Checking Purpose of Enterprise Structure we are using T-Code: -
EC01
 Go to command Field & Enter T-Code below screen opens.

 Click on Structure as above shown. Below screen opens.

 Click on Navigation as above shown.

 Above List of Company Code opens. Click on Find as above shown.

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 Enter Company Code here as above shown.

 As above it will show us an Enterprise/Organization Structure.

List of Important table for Organization Structure: -
1. T001: - Company Code
2. T001W/T001K: - Plant
3. T024E/T024W: - Purchase Organization

 For Checking Purpose Go to T-Code: - SE16N

 Enter the Table Name & Company Code. Execute.

 It will show us list of Plant/Valuation Area with this Company Code here.
 Step: - 3
Create Purchasing Groups: -
Path to Create Purchasing Group: -
SPRO->IMG->Materials Management->Purchasing->Create Purchasing Groups
 By double click on this below screen opens.

 Click on New Entries.

 Enter the Purchase Group as per requirement & its Description. Save the data.
 Purchase Group Created.

[Type here]
  Just for Checking purpose use this Enterprise Structure in PO as below.

 As per Configuration our Enterprise Structure is Correct.

Enterprise Structure: - 1 Company Code: - JDMS
Plant: - MMS1
Storage Location: - ROH1
Purchase Organization: - MM00
Purchase Group: - MS0

 As per Configuration our Enterprise Structure is Correct.

Enterprise Structure: - 2 Company Code: - JDMS
Plant: - MMS2
Storage Location: - ROH1
Purchase Organization: - MM01
Purchase Group: - MS1

Like this we can Create Enterprise/Organization Structure for MM Module.

[Type here]