4.1 Enterprise Structure

Enterprise Structure
Enterprise Structure
Company
MM Organization Level: Purchase Organization, Storage Location
Controlling Area
Purchase Organization
Company Code
Plant
The client is the top level of the organizational level. Several company codes can be assigned to one client. In turn, several plants can be assigned to a company code, and several storage locations assigned to a plant.
Storage Location
Storage Location
Plants must always be consecutively numbered for all company codes. Consequently, plants assigned to different company codes cannot have the same number. However, the numbers of storage locations can be repeated, as long as they are assigned to different plants
Definition: Organizational Levels:

The structure of an enterprise is represented in the SAP R/3 System by the following organizational levels: Client A grouping or combination of legal, organizational, business and/or administrative units with a common purpose. Example: a corporate group. General material data applicable to the entire company is stored at client level. This includes, for example, the material group, base unit of measure, material descriptions, and conversion factors for alternative units of measure.
Company code This level represents an independent accounting unit within a client. Each company code has its own balance sheet and its own profit and loss statement. Example: a subsidiary company, member of a corporate group. All data that is valid for a particular company code, as well as for the plants and storage locations assigned to it, is stored at company code level. This includes, for example, accounting data and costing data if valuation is at company code level. During Goods Movement , the system automatically updates the following data each time, Quantity and value for Inventory Management, Account assignment for cost accounting and G/L accounts for financial accounting via automatic account assignment The valuation area is the organizational level at which a material's stock value is managed. The valuation area can be plant level or company code level.
Plant
Operational unit within a company code. An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects. It is a place where either materials are produced or goods and services provided. Example: Manufacturing Plant, Planning Plant, Export Plant, Depot. All data that is valid for a particular plant, as well as for the storage locations belonging to it, is stored at plant level. This includes, for example, MRP data and forecast data. We can run MRP at Plant level. The quantity will update at plant level as well as company code level
Purchasing organization An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions. Purchasing group The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities. A purchasing group can also act for several purchasing organizations.
Plant
IMG-Enterprise Structure-Definition-Logistic General-define copy delete Check Plant(OX10) Copy delete check Plant Click on copy Copy from plant **** To plant ****
Define Plant
Select Plant and click on address icon and enter address details. + save.
Definition:
An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions
The following forms of purchasing exist:
A: Corporate-group-wide A purchasing organization procures for all the company codes belonging to a client.
B: Company-specific A purchasing organization procures for just one company code.
C: Plant-specific A purchasing organization procures for a plant.
Centralized Purchasing Corporate wide Group Purchasing
Purchase Organization One Purchase Organization is Responsible for number of Different Company Code
Plant-A
Plant-B
Plant-C
Plant-D
Company Code-X
Company Code-Y
Purchasing organization company code A purchasing organization can (but need not) be assigned to a company code. If you do not assign a company code to a purchasing organization, the latter can engage in procurement operations for every company code. A prerequisite for this is that the plant for which procurement is carried out is assigned to the purchasing organization.
Company Code Specific
Plant - purchasing organization/company code
In the SAP system, a plant must be assigned to one or more purchasing organizations. Furthermore, a plant must always be assigned to a company code.
Plant-A
Plant-B
Plant-C
Plant-D
Company Code-X
Company Code-Y
One Purchase Organization Responsible for one Company Code
Plant Specific Purchase Organization
Plant-B
One Purchase Organization Responsible for one Plant
The form of procurement is defined by the assignment of purchasing organizations to company codes and plants.
Define Purchase Organization: IMG-Enterprise Structure-Definition-Material Management-Maintain Purchase Organization(OX08).
New entry
Enter Purchase Organization-Code and Description of Purchase Organization + save.
Storage Location
Storage Location
IMG-Enterprise Structure-Definition-Material Management-Maintain Storage LocationOX09)
Enter Plant
An organizational unit allowing the differentiation of material stocks within a plant. All data referring to a particular storage location is stored at storage location level. This applies mainly to storage location stocks
New Entry
Storage Location
Enter Storage Location and Description + save.
Storage Location is the Level at which a plants actual stocks of material are kept. Stocks are managed at storage location on quantity basis-not on value basis. A storage location is always defined as belonging to certain a plants
Assignment
To transfer data between the individual components, you have to assign the organizational units to each other. You only need to make these assignments once in the system. Whenever you enter data subsequently, it is automatically transferred.
Assign Plant to Company Code.

IMG-Enterprise StructureAssignment-Logistic Generalassign Plant to Company code(OX18)
Select company code, Click on assign, Select Plant Press enter Save.
Assign Purchase Organization to Company code

IMG-Enterprise Structure-Assignment-Material Management-assign Purchase Organization to Company Code(OX01)
Select company code , click on assign and select purchase organization.
Press enter and Save.
Assign Purchase Organization to Plant

IMG-Enterprise Structure-Assignment-Material Management-assign Purchase Organization to Company Code(OX17)
The form of procurement is defined by the assignment of purchasing organizations to company codes and plants.
Select Purchase Organization, click on assign, select Plant, press enter and save.

4.1 Enterprise Structure

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Enterprise Structure

Definition: Organizational Levels:

B: Company-specific A purchasing organization procures for just one company code.

C: Plant-specific A purchasing organization procures for a plant.

Centralized Purchasing Corporate wide Group Purchasing

Company Code Specific

One Purchase Organization Responsible for one Company Code

Plant Specific Purchase Organization

One Purchase Organization Responsible for one Plant

Define Purchase Organization: IMG-Enterprise Structure-Definition-Material Management-Maintain Purchase Organization(OX08).

Enter Purchase Organization-Code and Description of Purchase Organization + save.

Enter Storage Location and Description + save.

Assign Plant to Company Code.

Assign Purchase Organization to Company code

Select company code , click on assign and select purchase organization.

Press enter and Save.

Assign Purchase Organization to Plant

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