SAP MM - Enterprise structure.

Client
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o

Client is the highest hierarchical level in SAP system

Client represents a corporate group in SAP Enterprise structure

Client is identified in the system by 3- digit numeric code ( 100 )

Data maintained at Client level is valid across all other organisational levels

Company Code
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Company code is smallest organisational unit within the client

Producing its own balance sheets and Profit/loss statements

Several company codes can be set up within the client

Company code is defined as 4-digit Alpha numeric key ( SAP1)

Plant is an organisational unit within the logistics and represents

Production facility as a plant

Plant

Distribution center as a plant

Sales office be as a plant

Head quarters as a plant

Service center as a plant

Plant is recommended to use as valuation area for Material valuation

Plant is defined as 4 - digit Alpha Numeric key in the SAP system ( PL01)

Storage Location

Storage Location is the lowest organisational level in MM and it helps to

differentiate the stocks
Inventory management is carried out on quantity basis at this level

Physical inventory is also done at this level

Defined as 4 digit alpha numeric key in the SAP system ( SL01)

Purchasing Organisation

Purchasing organisation procures materials and services based on the

requirements
Purchasing organisation negotiates terms and conditions with the vendor

Purchasing responsibility is on the head of purchasing organisation

Defined as 4 digit numeric key in the system

Purchasing group
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Purchasing group is nothing but a Buyer or Purchaser

Responsible for certain type of material or service procurement

Deals with the vendor by monitoring the purchasing activities

Defined as 3 - digit alpha numeric key in the system