SAP MM DOCUMENTATION

ENTERPRISE STRUCTURE
The terminology Enterprise or Organizational Structure in SAP System refers to mapping the
functional departments of a company in a hierarchical way to run the business smoothly using
SAP system. The SAP Organizational Structure consists of Organizational Elements or Units.
Related to SAP MM module, the Organizational units are “Client, Company Code, Plant, Storage
Location, Purchasing Organization and Purchasing Group”.

SL. NO. DEFINITION DESCRIPTION T-CODE

Company is the highest

01 Company organizational unit in the OX15
Enterprise Structure.

COMPANY: LOGITECH GROUP OF COMPANY

PATH: SPRO > SAP IMG > Enterprise Structure > Definition >
Financial Accounting > Define Company
 Company Code maintains the
financial books like Profit & Loss
02 Company Code OX02
A/c, Balance Sheet A/c etc. for
individual businesses separately.
Eg.: TATA Motors, TATA Steel etc.

COMPANY CODE: LOGITECH KEYBOARD PVT LTD

PATH: SPRO > SAP IMG > Enterprise Structure > Defintion > Financial Accounting > Edit,
Copy, Delete, Check Company code
 Plant is a manufacturing facility with
03 Plant Procurement and Production activities
OX10
taken care of. Plant is located based on
geographical location.

PLANT: PL01
 Storage Location is maintained
under Plant. Different types of
04 Storage Location OX09
materials will have different
storage locations.
Eg.: Raw Material Goods, Semi-
finished Goods, Finished Goods
etc.
STORAGE LOCATIONS:- 0001-ROH,0002-HALB,0003-FERT
PATH: SPRO > SAP IMG > Enterprise Structure > Definition > Materials Management >
Maintain Storage Location
 A purchase department in SAP
language is known as Purchasing
05 Purchasing Organization OX08
Organization. Purchasing Organization
handles all kinds of procurement
activities like vendor negotiations,
agreements etc.
PURCHASING ORGANIZATION: PK01
PATH: SPRO > SAP IMG > Enterprise Structure > Definition > Materials Management >
Maintain Purchasing Organization
.

A buyer or group of buyers OME4

handling the buying activities for
06 Purchasing Group
the company is called the
Purchasing Group.
PURCHASING GROUP: LO1
PATH: SPRO > SAP IMG > Materials Management>Purchasing>Create Purchasing Group
 A Valuation Area can either be a
Plant (Recommended) or a
Company Code. It means
07 Valuation Area valuation for the materials can be OX14
done either at Plant level or
Company Code level.
VALUATION AREA: PL01

PATH: SPRO > SAP IMG > Enterprise Structure > Definition > Logistics –
General > Define Valuation Level
SL. NO. ASSIGNMENT DESCRIPTION T-CODE

Multiple Company Codes

01 Company Code To with different currencies can OX16
Company be assigned to a Company

PATH: SPRO > SAP IMG > Enterprise Structure > Assignment > Financial
Accounting > Assign Company Code to Company
 Multiple plants can be
02 Plant To Company assigned to a Company OX18
Code Code. Multiple Company
Codes cannot be
assigned to a single Plant.

PATH: SPRO > SAP IMG > Enterprise Structure > Assignment > Logistics –
General > Assign Plant to Company Code
 Only a single Purchasing
04 Purchasing Organization can be assigned to OX17
Organization To a Plant (Plant specific
Plant Purchasing Organization).
A single Purchasing
 Organization can be assigned to
multiple plants (Cross Plant
specific Purchasing
Organization).

PATH: SPRO > SAP IMG > Enterprise Structure > Assignment > Materials
Mangement > Assign Purchasing Organization to Plant