SAP Enterprise Structure By Aman Saksena.pdf

SAP Enterprise Structure in SAP MM By Aman Saksena

1. SAP Enterprise Structure
Name: Aman Saksena
Phone:[phone]
Email: [email protected]
Aman Saksena : SAP MM Consultant

2. What is Enterprise Structure?
▪An Organization Structure/Enterprise Structure is the way a company
or any group of people is organized to achieve its goal.
▪In Simple Terms, an organizational structure in SAP MM refer to how a
company organizes and categories it’s various units and entities within
itself.
▪It’s a blueprint within the SAP system to represent different parts of the
company and their relationship when dealing with things like buying,
storing and managing materials.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

3. Main Components of Enterprise Structure
in SAP MM are :
▪Client
▪Company Code
▪Plant
▪Storage Locations
▪Purchase Organization
▪Purchase Group
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

4. Enterprise Structure in SAP MM
Plant 1
(4 Digits)
Company Code
(6 Digits)
Company Code
(6 Digits)
Client
(3 Digits)
Plant 2
(4 Digits)
Plant 3
(4 Digits)
Plant 4
(4 Digits)
Plant 5
(4 Digits)
Storage
Location 1
(4 Digits)
Storage
Location 2
(4 Digits)
Storage
Location 3
(4 Digits)
Storage
Location 4
(4 Digits)
Storage
Location 5
(4 Digits)
Storage
Location 6
(4 Digits)
Purchase Organization
(4 Digits)
Purchase Group
(3 Digits)
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

5. Client
▪Client is like a separate space or instance within the SAP system.
▪It represents an independent business entity or company that uses the SAP software
for managing its operations.
▪Each client operates as a standalone unit with its own data and configurations, allowing
multiple companies to use the same SAP system without interfering with each other.
Example: XYZ Corporation
▪XYZ Corporation is a company that uses SAP for its operations. In the SAP system, ABC
Corporation is set up as a client.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

6. Client (cont.)
1.Each client is assigned a unique identification number. For XYZ Corporation, its client number
might be 100.
2.The data in one client is isolated from the data in other clients. This means that the information,
transactions, and configurations for XYZ Corporation are separate from those of other
companies using the same SAP system.
3.When setting up SAP for XYZ Corporation, a new client is created in the system. This involves
specifying details like the client name, client number (e.g., 100 for XYZ Corporation), and other
basic settings.
4.XYZ Corporation maintains its own master data (e.g., materials, vendors) and transactional data
(e.g., purchase orders, invoices) within its client. This data is unique to XYZ Corporation and is
not accessible to other clients in the system.
5.XYZ Corporation can customize the SAP system based on its specific requirements. For example,
it can define its own document types, numbering schemes, and business processes within its
client.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

7. Company Code
▪Company Code is a key organizational unit used for financial accounting. It represents a legally
independent entity for which financial statements can be created. The company code is crucial for
managing financial transactions and generating financial reports.
▪Simple Explanation: Think of a company code as a distinct financial entity within a larger
organization. If a company has multiple subsidiaries or operates in different countries, each of these
entities might have its own company code to track its financial activities separately.
▪Example: Let's consider for XYZ Corporation. XYZ operates in the India and Belgium. To manage
financial transactions independently in each country, XYZ creates two company codes:
1.Company Code for the India:
1.Company Code: IN1
2.This code helps track financial activities specifically for XYZ's operations in India.
2.Company Code for Belgium:
1.Company Code: BE1
2.This code is used to manage financial transactions related to XYZ's operations in Belgium.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

8. Company Code (cont.)
▪SPRO (SAP Project Reference Object) -> SAP Reference IMG (Implementation Guide) ->
Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company
Code
▪Table – T001
▪T-Code to create Company Code – OX02
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

9. Plant
▪Plant is a physical location within a company where materials are either produced or stored. It's like a
specific site, such as a factory or warehouse, where the company's materials-related activities take
place.
▪Example: XYZ Manufacturing Company
Let's consider XYZ Manufacturing Company, which produces bicycles. In SAP MM:
XYZ Manufacturing has two plants:
1.Plant 1000: XYZ Manufacturing Main Factory (production of bicycle components)
2.Plant 2000: XYZ Manufacturing Warehouse (storage of finished bicycles)
▪SPRO>IMG>Enterprise Structure>Definition>Logistics>General>Define, copy, delete,
check plant.
Table for list of plants : T001W
▪T-Code : OX10
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

10. Storage Locations
▪In SAP MM (Materials Management), a "Storage Location" is a specific area within a plant
where materials are stored. It helps organize and manage the inventory by providing a more
detailed level of location information. Think of it as different sections or rooms within a
warehouse where goods are kept.
▪Example: Let's say you have a manufacturing plant, and within that plant, you have different
areas for storing materials. Each of these areas is a storage location. For instance:
•Plant: Manufacturing Plant
•Storage Locations:
•Raw Materials Storage (for storing raw materials)
•Finished Goods Storage (for storing finished products)
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

11. Storage Locations (cont.)
▪SAP Customizing Implementation Guide > Enterprise Structure > Definition
> Materials Management > Maintain storage location.
▪T-Code : OX09
▪Table : T001L
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

12. Purchase Organizations
▪In SAP MM, a Purchase Organization is a unit responsible for procurement activities within a
company. It manages the buying process, negotiates with suppliers, and ensures that materials or
services are procured efficiently. Let's break it down with a simple example:
▪Example: ABC Corporation
▪ABC Corporation has a purchasing department responsible for buying materials. In SAP MM, this
purchasing department is represented by a Purchase Organization.
One purchasing organization can be assigned to only onecompany code, but one company
code can have one or more purchase organizations.
▪SPRO -> SAP Customizing Implementation Guide –> Enterprise Structure -> Definition –>
Materials Management -> Maintain Purchase Organization.
T-Code : OX08
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

13. Types of Purchase Organizations
1.Company code specific:
2.Plant specific
3.Reference purchase organization.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

14. Types of Purchase Organizations
Company code specific:
▪This purchase org will procure material and service for all the plants
which are assigned to the company code.
▪Company Code Specific Purchasing Organization" refers to a setup where each
company code has its own dedicated purchasing organization (Purchasing Org
or P.org). This means that for every company code in an enterprise, there is a
separate purchasing organization responsible for procuring materials and
services specifically for that company code
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

15. Types of Purchase Organizations (cont.)
Plant specific:
▪Plant specific purchase organization will be assigned specific plants,
and it will procure material only for those plants. This purchase
organization will not acquire the material for all the plant attached
to the company code.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

16. Types of Purchase Organizations (cont.)
Reference purchase organization:
▪Reference purchase org will act as the head office. The reference
purchase org will do all the contract and negotiation activity with the
vendor. Whenever the normal Purchase org procuring material, it will
always refer the Reference purchase organization
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

17. Client
Company Code 1 Company Code 2
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5
POrg1
Company Code
Specific POrg.
Porg 3
Cross- Plant
Specific POrg.
Porg 2
(Plant- specific
Porg)
Types of Purchase Organization
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

18. RORG
Company
Code
Plant 1 Plant 2
Reference POrg
Contract/Rules
Porg - IORG
Create Purchase
Order
for material –XYZ
and vendor 1234
- Vendor 1234
- Material XYZ
Material Master –
XYZ material
extended for the
Plants
Vendor Master
1234
extended for both
RORG and IORG
Reference Purchase Organization
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

19. Purchasing Group
▪Apurchasing groupis a unit of a purchasing organization which is responsible for
day-to-day certain buying activities and controls a particular type of procurement
activity based on some classification.
•SAP IMG Path: –SPRO >> SAP Reference IMG(F5) >>Materials Management >>
Purchasing >>Create Purchasing Groups
•Transaction code: – OME4
▪Imagine a company named “XYZ Electronics." Within XYZ Electronics, there might be different
departments or teams responsible for buying various types of materials. The Purchasing Groups
could be defined based on these departments, such as "Electronics Components Purchasing
Group" or "IT Equipment Purchasing Group." Each Purchasing Group is responsible for procuring
specific types of materials.
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

20. Assignments for Enterprise Structure
▪1] Assign Company Code to Company
▪2] Assign Plant to Company Code
▪3] Assign purchasing organization to company code
▪4] Assign Purchasing Organization to Plant
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

21. 1] Assign Company Code to Company
▪Path to Assign company code to company: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Financial Accounting-> Assign
company code to company
T- Code:
OX16
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

22. 2] Assign Plant to Company Code
▪Path to Assign Plant to Company Code: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Logistics - General-> Assign plant to
company code
T- Code :
OX18
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

23. 3] Assign purchasing organization to
company code
▪Path to Assign purchasing organization to company code: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Materials Management -> Assign
purchasing organization to company code
▪T-Code :
OX01
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]

24. 4] Assign Purchasing Organization to Plant
▪Path to Assign purchasing organization to Plant: -
SPRO->IMG-> Enterprise Structure-> Assignment-> Materials Management -> Assign
purchasing organization to plant
▪T-Code :
OX17
Aman Saksena : SAP MM Consultant
Name: Aman Saksena
Phone:[phone]
Email: [email protected]