SAP MM - Enterprise structure.

Client

o Client is the highest hierarchical level in SAP system

o Client represents a corporate group in SAP Enterprise structure
o Client is identified in the system by 3- digit numeric code ( 100 )
o Data maintained at Client level is valid across all other organisational levels

Company Code

o Company code is smallest organisational unit within the client

o Producing its own balance sheets and Profit/loss statements
o Several company codes can be set up within the client
o Company code is defined as 4-digit Alpha numeric key ( SAP1)

Plant

o Plant is an organisational unit within the logistics and represents

 Production facility as a plant
 Distribution center as a plant
 Sales office be as a plant
 Head quarters as a plant
 Service center as a plant
o Plant is recommended to use as valuation area for Material valuation
o Plant is defined as 4 - digit Alpha Numeric key in the SAP system ( PL01)

Storage Location

o Storage Location is the lowest organisational level in MM and it helps to differentiate the
stocks
o Inventory management is carried out on quantity basis at this level
o Physical inventory is also done at this level
 o Defined as 4 digit alpha numeric key in the SAP system ( SL01)

Purchasing Organisation

o Purchasing organisation procures materials and services based on the requirements

o Purchasing organisation negotiates terms and conditions with the vendor
o Purchasing responsibility is on the head of purchasing organisation
o Defined as 4 digit numeric key in the system

Purchasing group

o Purchasing group is nothing but a Buyer or Purchaser

o Responsible for certain type of material or service procurement
o Deals with the vendor by monitoring the purchasing activities
o Defined as 3 - digit alpha numeric key in the system