SAP MM Defining Organizational Structure - SAP MM

What is SAP MM Defining Organizational Structure?

As mentioned organization shape is the framework of company which describes the complete structure and functioning of a company. organization structure is designed in a way that it is split into specific ranges and every level is located in line with hierarchy. these ranges have relationship to each other. The various ranges in a preferred organization are as follows:

  • Company
  • Company code
  • Plant
  • Storage location
  • Purchasing organization
  • Purchasing organization

All the Definitions in SAP can be achieved via show IMG screen as shown below:

Path to reach Definition: IMG => enterprise structure => Definition.

SAP MM - Defining Organizational Structure

Create Company

Organization is the topmost organizational unit after customer which includes person financial accounting statements of numerous company codes. A company may have many organization codes. In SAP it is optional to create organization. Following steps will take you through the method of making company.

Course to Create company:

IMG => enterprise structure => Definition => financial Accounting => define company

TCode: OX15

On display IMG screen choose outline company execute icon by following the above path.

SAP MM - Defining Organizational Structure

Select New Entries icon.

SAP MM - Defining Organizational Structure

Fill in all important details like name of organization, address of company with street number, city, country and postal code. click on save icon. a new company can be created.

SAP MM - Defining Organizational Structure

Create company Code

A company code is the smallest organizational unit after organization for which stand-alone financial accountings, profit and loss statements may be withdrawn. Many organization codes may be assigned to one employer. Following steps will take you through the method of making organization code:

Path to create company Code:

IMG => enterprise structure => Definition => financial Accounting => Edit, reproduction, Delete, check company Code

TCode: OX02

On show IMG display choose Edit, copy, Delete, test company Code execute icon through following the above path.

SAP MM - Defining Organizational Structure

Select New Entries icon.

SAP MM - Defining Organizational Structure

Fill in all important details like company code, organization name together with city, country, currency, language. click on keep icon. a new company code can be created.

SAP MM - Defining Organizational Structure

Create Plant

Plant is an organizational unit inside a company where activities take region. A plant will produce items and makes items to be had for the organization. Following steps will take you through the method of making Plant:

path to create Plant:

IMG => company structure => Definition => Logistic general => define, copy, Delete check plant

TCode: OX10

On show IMG screen select outline, copy, Delete check plant execute icon by following the above path.

SAP MM - Defining Organizational Structure

Select Define Plant icon to create a new plant.

SAP MM - Defining Organizational Structure

Select New Entries icon.

SAP MM - Defining Organizational Structure

Fill in all important details like plant call along with particular data like Language, house no.,city, country, area, postal code. click on on save icon. a new plant can be created.

SAP MM - Defining Organizational Structure

Create storage location

Storage region is an organizational unit which actually differentiates among different material stocks in a Plant. storage region is a place where stock is saved physically. Plant may be including multiple storage region. All information is saved at storage region level for a selected storage region. Following steps will take you through the method of making storage region:

Path to Create storage location:

IMG => enterprise structure => Definition => materials management => maintain storage location

TCode: OX09

On show IMG screen choose maintain storage region execute icon by following the above path.

SAP MM - Defining Organizational Structure

Enter the name of plant for which you want to create storage location.

SAP MM - Defining Organizational Structure

Select New Entries icon.

SAP MM - Defining Organizational Structure

Enter the name of storage area along with the description of storage area. click on on save icon after filling required data. a brand new storage area can be created.

Create Purchasing organization

Purchasing company is an organizational unit below organization or plant that is responsible for procurement activities consistent with requirements. it is responsible for outside Procurement. purchasing company may be specific to plant or organization. Following steps will take you through the method of making purchasing organisation:

Path to Create purchasing organization:

IMG => company structure => Definition => materials management => maintain purchasing organization

TCode: OX08

On show IMG screen choose maintain purchasing organization execute icon through following the above path.

SAP MM - Defining Organizational Structure

Select New Entries icon.

SAP MM - Defining Organizational Structure

Enter the name of purchasing organization along with the description of it. Click on save icon after. A new Purchasing Organization will be created.

SAP MM - Defining Organizational Structure

Create purchasing group

Purchasing group is an organizational unit that is responsible for normal procurement activities inside an company. Following steps will take you via the method of creating purchasing organization:

path to Create purchasing group:

IMG => materials management => purchasing => Create purchasing group

TCode: OME4

On show IMG screen choose hold purchasing group execute icon through following the above path.

SAP MM - Defining Organizational Structure

Select New Entries icon.

SAP MM - Defining Organizational Structure

Enter the name of purchasing organization along with the outline of it with telephone no., fax no, etc. click on save icon. a new purchasing group can be created.

SAP MM - Defining Organizational Structure

All rights reserved © 2018 Wisdom IT Services India Pvt. Ltd DMCA.com Protection Status

SAP MM Topics