SAP MM Enterprise Structure - SAP MM

What is SAP MM Enterprise Structure?

Every company has some framework or a few structures is described according to which the complete business runs. company shape is the shape that represents an organization in SAP ERP device. it is subdivided into numerous organizational devices which for legal reason or business associated purpose are grouped together.

Company structure defines various ranges in an organization. these stages are located consistent with some hierarchy. every level has some precise functionality related to it, which in a combined manner describes the working of an company. also organization shape defines numerous organizational units that are found in an enterprise. The Organizational structure in MM includes following Organizational levels:

  • Client
  • Company Code
  • Plant
  • Storage location
  • Purchasing organization
  • Purchasing group

Following diagram is one such organizational structure which describes the ranges incorporated in an company. client being on the topmost, observed through multiple company code, observed via multiple plants, flowers having more than one storage region with their very own or centralized purchasing organizations.

SAP MM - Enterprise Structure

Client

The essential explanation of client is as follows:

  • Client is a business organizational unit in R/3 system.
  • It has its own set of master data with independent table sets.
  • According to hierarchy, client is at maximum level in SAP system.
  • Data this is maintained at client level is valid for all organizational ranges.

Company Code

The essential explanation of company Code is as follows:

  • Within client, company code is the independent accounting unit.
  • It is a legal entity that has its personal profit, loss and balance statement.
  • It is the smallest unit in company for which a complete independent account set may be replicated.

Plant

The essential explanation of Plant is as follows:

  • Plant is an organizational unit inside a company in which activities take region. A plant will produce goods and makes items available for the organization.
  • It is unit having production facility, warehouse distribution middle or a local sales office within logistic. It subdivides an employer in different elements.

Storage location

The essential explanation of storage region is as follows:

  • Storage region is an organizational unit which actually differentiates between special material stocks in a Plant.
  • Storage region is a place wherein inventory is kept physically.
  • Plant may be including multiple storage region. All data is saved at storage region stage for a selected storage region.

Purchasing Organization

The essential explanation of purchasing organization is as follows:

  • Purchasing organization is an organizational unit below organization or plant which is responsible for procurement activities according to necessities. it is responsible for outside Procurement.
  • Purchasing organization may be at client stage i.e. centralized purchasing organization.
  • Purchasing organization can be at enterprise or plant stage i.e. company specific or plant precise

Different types of purchasing can be defined as follows:

Centralized Purchasing

Purchasing organization is not assigned to any agency code it procures for all company codes belonging to specific client.

Company Specific Purchasing

Shopping organization is assigned to a company code best, Plant belonging to the agency code can purchase via this purchasing company.

Plant Specific Purchasing

Purchasing organization is assigned to a Plant, best this precise Plant can purchase through this purchasing organization.

Purchasing Group

The fundamental explanation of purchasing organization is as follows:

  • Purchasing group is an organizational unit which is responsible for everyday procurement activities inside an organization.
  • It is a client or organization of client responsible for procurement activities in a purchasing organization.

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