SAP- Enterprise structure

 Enterprise Resource Planning(ERP):

It is a very comprehensive term mainly involves systematic planning for utilization of
resourses(Man,materail,Money,machines and methods)of an organisation in order to reduce cost and
save time.

 ERP helps to increase productivity and Efficiency of an Organisation.

 There are many ERP tools avialable i.e SAP, ORACLE FINANCIALS, JDEDWARDS, BAWN.
EPICORE, PEOPLE SOFT etc. but amongest all SAP is most commonly used because of its
extrodinary features.

SAP
Systems Applications and Products in data Processing(SAP) is a integrated ERP commurcial tool which helps to
achieve efficiency in a industry interms of profit and productivity.

 SAP is meant for RIGHT THING AT RIGHT PLACE BEFORE TIME.

 Data stored is highly confidential
 User friendly.
 It is a centralised tool;
 Integration is main part in he SAP compared to other ERP softwares.

SAP modules:There are two types of modules ;one is Functional module and other one is
Technical module.
 Technical modules
• ABAP
• BASIS
Functional modules
• Productiona planning
• Material management
• Financial and Controlling
• Sales and Distribution
• Quality management
• Warehouse management etc

SAP-Material Management

SAP MM is the short form for SAP Material Management system. The roles of SAP
MM in a business process are as follows:
 A business process in SAP is termed as a “module”.
 SAP MM is a part of logistics functions and it helps in managing the procurement activities of an
organization.
 It supports all aspects of material management (planning, control, etc.).
 It is the backbone of logistics that incorporates modules such as Sales and Distribution, Production
Planning, Plant Maintenance, Project Systems, and Warehouse Management.

Features of SAP-MM:

SAP MM is one of the modules of SAP that deals with material management and inventory management.
 Material Management as a process ensures no shortage of materials or any gaps in the supply chain
process of the organization. SAP MM speeds up the procurement and material management
activities, making the business run smoothly with complete time and cost efficiency.
 It deals with managing the materials (products and/or services) and resources of an organization with
the aim of accelerating productivity and reducing costs. At the same time, SAP MM is quite versatile
to accommodate changes that are frequent in any business environment.
  It deals with the Procurement Process, Master Data (Material & Vendor Master), Account
Determination & Valuation of Material, Inventory Management, Invoice Verification, Material
Requirement Planning, etc.

1 Enterprise structure in SAP

Enterprise structure consist of six stages as shown in following block diagram.First we need to create company using
specific path or by Transcation codes(T-codes) then followed by company code,plant,storage location,purchase
organisation and Purchase group.

1.1 Creation of Company:

It is a organisational unit forwhich individual financial statements can be drawn accoding to country’s
commurcial laws.

 Transcation or T-code used for creating company is OX15

 Company consisting one or more company codes and uses local currencies for transcations
 All the company codes within a company must use the same transcations,chart of accounts in the same
fiscal year

Fig. 1 Path for creating company.

1.2 Creation of company code:

A Company Code is the smallest organizational unit after company, for which the standalone financial
accounting's profit and loss statements can be withdrawn.

 Transcation or T-code used for creating company is OX15

Fig.2 Path for Creating company code.

1.3 Creation of Plant:

A Plant is an organizational unit within a company where activities take place. A plant will produce goods
and make goods available for the company. Plant may consist of one or more storage locatin.

 Transcation or T-code used for creating Plant is OX10

Fig.3 Path for Creating Plant.

1.4 Creation of :Storage location for plant:

A Storage Location is an organizational unit, which actually differentiates between the different material
stocks in a Plant. Storage location is a place where stock is kept physically.

 Transcation or T-code used for creating Storage location is OX09

Fig.4 Path for Creating Storage location.

1.5 Creation of Purchase organisation:

A Purchasing Organization is an organizational unit under Company or Plant that is responsible for
procurement activities according to requirements. It is responsible for external procurement. A purchasing
organization can be specific to a plant or a company.
  Transcation or T-code used for creating Purchase organisation is OX08

Fig.5 Path for Creating Purchase organisation.

1.5 Creation of Purchase group:

A Purchasing Group is an organizational unit that is responsible for the everyday procurement activities
within an organization.

 Transcation or T-code used for creating Purchase group is OME4

Fig.6 Path for Creating Purchase group

 Enterprise structure involvs two major stages as follows
1.Defination
2.assignment

 Defining or creating different fields such as company,company code,plant,storage location for

plant,purchase organisation and purchase group as shown in fig.7
 Assignment is helps to interconnect different fields of Enterprise structure i.e interconnecting
company code to company,Plant to company code,purchase organisation to plant and Purchase
organisation to Company code as shown in fig.8
T-codes used for creating Enterprise structure
Defination:

T Codes Description
OX15 For Creating Company
OX02 For creating company code
OX10 For creating plant
OX09 For creating storage location
OX08 For creating Purchase organization
OME4 Purchase group
Assignment:

OX16 Assign company code to company

OX18 Assign plant to company code
OX17 Assign purchase organization to plant
OX01 Assign purchase organization to company code

ECO1 To view Enterprise structure

MMPV To update period

MMRV To view period for a company code

OMSY To assign fiscal year for company code

OBY6 To select type of period for a company code

 Example:how to create Enterprise structure:
 Enterprise structure
 Login screen: Enter User name and Password…….

 Once you entered username and Password, just press ‘Enter’ button on keyboard,the following
screen will be appear
The above screen seen is called as ‘End user screen’

 Details of End user screen as shown in

 1.Creation of company:[OX15]
 T –code: OX15
(Company name 1 is just like description of company)
 The next stage will be Creation of COMPANY CODE
T-code for creation of COMPANY CODE is OX02 or follow path for creation of COMPANY
CODE as mentioned in Fig.2
 Click on the EDIT,copy,delete,check company code and following screen will appear

 Click on the copy,delete,check company code the following screen will appear.in that
screen click on the COPY
Enter From company code=1000

To company code=name of your new

company code
5. Creation of Purchase organization
Save it