SAP- MM

Organizational Structure
The organizational structure is the key for a successful SAP
implementaion. To achive flawless execution of business processes, its
extremely important that the organizational structure is accurately
mapped in the SAP system (Akash Agrawal)
Mapping to SAP
Company Subsidiary
Factory
Storage Location /
Warehouse
Purchase
Departement
Buyer Buyer
Enterprise
( Organizational Structure )
SAP
( Organizational Unit )
Enterprse
(Corporate Group)
Client
Company
Code
Plant
Purchasing
Organization
Purchasing
Group
Storage
Location
Four aspect defining a Client :
1. Organization Structure: The highest organizational unit in
organizational structure
2. Business Environtment: Representation of a holding company or
group of companies.
3. Technical Environment: Boundary of the master data.
4. Work Environment: Work area that end users interact with inthe
system. Ninety percent of the tables in the client are client dependent
Client
ABC Corporation
ABC Steel ABC FMCG ABC Pharmacy ABC Steel ABC FMCG ABC Pharmacy
ABC Steel ABC FMCG ABC Pharmacy
Client
Company
Code
SAP Group Implementation SAP Individually Implementation
SAP defines a company and company code separately:
Company
Smallest organizational unit for which legal financial
statements can be prepared.
A company can contain one or more company codes,
but they must use the same chart of accounts and the
same fiscal-year breakdown.
Company code
smallest organizational unit for which a complete self-
contained set of accounts can be drwan up.
Provide data for generating balance sheets and profit-
loss statements
Represent legally independent companies.
Company Code
ABC Steel
ABC Steel
USA
ABC Steel
Canada
ABC Steel
Mexico
Several definition :
U.S. Cencus Bureau (2002) : A company comprises all the establishment that operate under
the ownership or control of a single organization. A company may be a business, service, or
membership organization; it may consist of one or several establishment and operate at one
oreseveral locations. It includes all subsidiary organization, all establishment that are majority
owned by the company or any subsidiary and all the establishment that can be directed or
managed by the company or any subsidiary.

New Company
Note :
Able to differs Company-Code currencies
Same Chart of Account
Plant
Plant didefinisikan sebagai unit organisasi dalam sudut pandang logistik yang
berhubungan dengan produksi, procurement, plant maintenance dan material
planning.
Plant dapat berupa manufacturing facility, sales office, corporate head office,
maintentance plant, warehouse
Jika nilai satu material yang sama dalam dua lokasi yang berbeda mempunyai
harga satuan inventory yang berbeda maka plant yang didefinisikan harus
terpisah.
Satu plant dihubungkan hanya ke satu company saja.
Sloc
Storage Location is a place within a plant where material are
kept.
Physical Inventory is carried out at the storage location
Physical inventory is the process of verifying physical stock with
the system stock and will be updfte in any differences exist in
stock quantity with system stock.
Purchasing Organization
In industry terminology, purchasing departement deals
with vendor and responsile for all procurement activities.
The purchasing departement is mapped as a purchasing
organization in the SAP system.
Purchasing organization negotiate conditions of purchase
with vendor for one or more plants
Purchasing Group
Purcashing group is a term for a buyer or group of buyers
responsible for certain purchasing activities.
Purchasing group isnt assigned to purchasing organization
or any other organizational units
Purchasing groups are defined at thelclient level and can
create purchasing document for any purchasing
organization
Business Scenarios
Scenario 1 :
Plant-Spesific Purchasing Organization
Purc. Org 1 Purc. Org 3 Purc. Org 2
Purc. Org 1 Purc. Org 2
Scenario 2 :
Cross-Plant Purchasing Organization
Business Scenarios
Scenario 3 :
Cross-Company Purchasing Organization
Purc. Org 1
Scenario 4 :
Reference Purchasing Organization
Purc. Org 1 Purc. Org 3 Purc. Org 2
Purc. Org 4