SAP MM

ORGANIZATION STRUCTURE

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 ORGANIZATIONAL STRUCTURE
• EVERY ORGANIZATION HAS SOME STRUCTURE ACCORDING TO WHICH
THE WHOLE BUSINESS RUNS.
• AN ENTERPRISE STRUCTURE IS A STRUCTURE THAT REPRESENTS AN
ENTERPRISE IN THE SAP ERP SYSTEM.
 CLIENT
 COMPANY
 COMPANY CODE
 PLANT
 STORAGE LOCATION
 PURCHASING ORGANIZATION
 PURCHASING GROUP
 CLIENT

• A client is an entity with independent information and data in the SAP

landscape.

• Types of Clients
 Development – Customization
 Quality-Testing
 Production – End User
 DEFINE COMPANY

• Created to get the book-keeping records of profit and loss.

E.g. TATA Group, Mahindra & Mahindra.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Financial

Accounting - Define company

T Code: OX15
 DEFINE COMPANY
CODE
• To create a financial statement of an individual.
E.g. TATA Steel, TATA Motors, TCS.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Financial

Accounting - Edit, Copy, Delete, Check Company Code

T Code: OX02
 DEFINE PLANT

• Plants are operational facilities within a company. (production facility,

Warehouse)

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Logistics –

General - Define, copy, delete, check plant

T Code: OX10
 STORAGE
LOCATION
• A storage location is a place where stock is kept physically.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Materials

Management - Maintain storage location

T Code: OX09

• We create a storage location w.r.t plant so no need to assign.

 PURCHASING ORGANIZATION

• It is an organization that is responsible to procure material or services.

• Path: SPRO – SAP Ref IMG - Enterprise Structure – Definition - Materials

Management - Maintain purchasing organization

• T Code: OX08
 PURCHASING GROUPS

• It is a group of buyers or people who are responsible to procure materials or

services.
• The purchasing group is a free entity that is defined in the org but not
assigned to any level of the org. structure.

Path: SPRO – SAP Ref IMG - Materials Management – Purchasing - Create

Purchasing Groups

T Code: OME4
 ASSIGN COMPANY CODE TO
COMPANY
• We can assign multiple Company Codes to Company.
• But we can assign only one company to the company code.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Assignment - Financial

Accounting - Assign company code to company

T Code: OX16
 ASSIGN PLANT TO COMPANY CODE

• We can assign multiple plants to Company Code.

• But we can assign only one company code to the Plant.

Path: SPRO – SAP Ref IMG - Enterprise Structure – Assignment - Logistics

– General - Assign plant to company code

T Code: OX18
 TYPES OF PURCHASE ORGANIZATION

• Centralize Purchase Organization: It is assigned to the company code which

works for all plants of the company code.

• Plant Specific: It is assigned to a plant it works for the specific plant.

• Cross Plant: It is assigned to the different plants of different company codes.

 ASSIGN PURCHASING
ORGANIZATION
• Assign purchasing organization to plant

• Path: SPRO – SAP Ref IMG - Enterprise Structure – Assignment - Materials

Management - Assign purchasing organization to plant

• T Code: OX17
 Client

Company

Company Company Centralize P.

Code 1 Code 2 Purch Group
Org.

Plant Sp. Purch

Plant 1 Plant 2 Plant 3
P. Org. Group

Storage Storage
Location 1 Location 2
Cross Plant
Purch Group
P. Org.
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